Chips&Media licenses 8K video codec IP for Ambarella edge AI chips

This licensing deal ensures that as edge AI applications shift toward 8K resolution, low-power processing remains a viable standard for energy-constrained devices. For the streaming and vision ecosystem, it signals a deeper integration between specialized codec IP and neural processing hardware, essential for real-time video analytics at the edge. The consolidation of these technologies allows Ambarella to maintain its competitive edge against traditional GPU vendors by focusing on performance-per-watt. Watch for the first production silicon of this next-generation SoC family to gauge real-world power efficiency gains in 8K industrial environments.

Additional context: The expanded partnership follows a period of growth for both companies in the semiconductor IP and AI sectors. Per Chips&Media reports from July 2024, the company's video codec IPs have been incorporated into over 1.55 billion chips over the past two decades, with clients including Qualcomm and NXP. The firm has recently prioritized Neural Processing Unit (NPU) development and established a China-based joint venture in late 2024 to capitalize on the regional demand for domestic AI chip architecture.

Ambarella, meanwhile, has been aggressively pivoting from its consumer camera roots into high-margin automotive and industrial markets. Per company filings in February 2025, Ambarella reported fiscal year 2025 revenue of $284.9 million, a 25.8% increase year-over-year, driven significantly by its CV3-AD family of automotive domain controllers. The company also reached volume production of its CV3-AD family integrated with Oculii 4D imaging radar in mid-2025, according to industry analysts.

The broader semiconductor IP market is projected to grow from $8.48 billion in 2025 to over $17 billion by 2033, per SNS Insider (December 2025). This growth is largely fueled by the rising demand for specialized processors in autonomous vehicles and IoT devices. As AI workloads increasingly require hardware-accelerated video compression, the integration of 8K-capable codecs like those from Chips&Media into edge SoCs becomes critical for managing the massive data throughput of high-resolution sensor suites.