Aug 20 (Reuters) - AI chip and software startup Recogni

unveiled a novel computing method on Tuesday that could make its

chips used to train and run artificial intelligence systems

smaller, faster and less expensive to operate.

Backed by BMW, Bosch and venture capital firm

Mayfield, Recogni develops specialized chips and software to

enable AI inferencing - the process of trained AI models making

predictions or decisions on new, unseen data.

The company said the new patented system, called Pareto,

utilizes a logarithmic approach that outperforms existing

methods when running large AI models.

"It is a huge leap in all of the KPIs (key performance

indicators) that influence silicon hardware system design when

it comes to AI computing," Recogni's co-founder and VP of AI,

Gilles Backhus told Reuters.

Current AI models, such as OpenAI's GPT-4 and Google's

Gemini, require hundreds of thousands of power-hungry

mathematical operations for the simple of prompts on chatbots

like ChatGPT.

Recogni said that its new system converts these

multiplication operations into additions, significantly reducing

power consumption while maintaining accuracy.

The startup said it has already tested Pareto on AI models

developed by Meta Platforms, Stability AI, and others.

Recogni, whose first chip was designed, manufactured

Taiwan Semiconductor Manufacturing Co's ( TSM ) seven

nanometer process, said it was working with an unnamed partner

to make Pareto more widely available and will announce the

partnership in the coming months.

"We are speaking to companies that are putting hardware in

data centers and offering it to the world to whoever wants to

basically rent it ... that's definitely one of the deployment

routes that we're considering," Backhus added.