Brian Dobson: Yeah. Thanks. And just one final question. As far as your involvement with the school district in Florida, has that helped you further conversations with other school districts? I know we touched upon that on your last call.
Gideon Ben-Zvi: Sorry, I could — can you please repeat? We don’t — it was heard here not so clear. Can you please repeat the question?
Brian Dobson: Yeah. Apologies. So, as far as your work with the Florida school district, has gaining a foothold there helped further discussions with other school districts that you may be speaking with? I know we chatted about that briefly on your last call.
Gideon Ben-Zvi: Well, there are — again, it’s like — in this kind of session, we cannot speak a lot about certain customers. I can say that our AV activity is facing new opportunities, both in school districts, both in the hybrid education, in industrial, and it is something that we believe has a lot of upside for Valens in the future. And part of it is the hybrid education, which is actually part of what you just mentioned at the school district. It’s an industry which has own mannerism and own decision-making speed, and it’s a B2G, it’s business to government, but we are also see an upside here.
Brian Dobson: Thank you very much.
Gideon Ben-Zvi: Thank you.
Operator: The next question is from Suji Desilva of ROTH Capital. Please go ahead.
Suji Desilva: Hi, Gideon. And Guy, welcome to the call. Best of luck in the new role here.
Guy Nathanzon: Thank you.
Suji Desilva: So, yes, the VS6320 sounds interesting here, Gideon. Can you talk about the AI CV market opportunity, the surveillance opportunity for computer vision? That sounds very interesting and could be probably your largest opportunity. But I curious if that is the case and how your traction is there early in that market.
Gideon Ben-Zvi: Thank you very much, Suji, for the question, especially thank you because I asked Daphna before, I want someone to ask me about AI, and therefore, I’m especially thankful this time. AI — my personal background is — before Valens is in AI for more than 20 years. AI requires a lot of data and very accurate, especially AI, which is untapped. That’s actually needs to learn itself the situation. What we are doing in the world of ADAS, the world of ADAS require a lot of data all the time. And I just want to be very concrete and down to earth. When speaking about compromising on data, what is compromising on data? It’s going — let’s say, we don’t have enough bandwidth. Should we go from 30 to 24 frames per second?
Should we go from 12-bit pixel to 80-bit pixel? And what does it mean? It means that it might not see the foot of the child is going to cross the street in 300 yards from us or because of the fog that there is not enough color there to see the difference between the red light and green light. And this is where the amount of data that is required becomes a lot more essential as important, and the resilience of the link that takes all this data back from the camera to the ECU is more and more essential, because if you lose this link because of electromagnetic influence, the AI, the whole AI might function less good than pre-AI system. So, the AI requirement for a lot of data, and people — when people start to speak about AI, they started to speak about big data.
It came together because AI is — has a very unique need of a lot of data, and this is where we are positioned. One last thing. When you move from a certain resolution to double resolution and from certain data bandwidth to double, the exposure to EMC is not double. It’s exponentially higher. So, the case of a car, they’re moving your cellular antenna under a truck, above a bridge, wherever, whether you have a magnetic influence make the whole link a lot more fragile and the ADAS is lot less functional. So this is where AI and how Valens is an AI enabler because of the need for more data and more resilience, a way to transfer the data in time.
Suji Desilva: Okay. No, that makes a lot of sense, Gideon. Appreciate that. In the ’24 revenues versus ’23, do you have a sense of what auto will be in the mix? And in the first half, is it weaker because of the — into the cautious guide because of the inventory digestion? Does that impact on the first half for auto?
Gideon Ben-Zvi: Okay. Thank you for the question. So, we think that eventually — just one second. Sorry for the wait. We have a technical problem. Sorry for that. Can you repeat the question, please, one more, because…
Suji Desilva: Sure, yes. Sure. I’m sorry. So in the — what the auto revenue mix will be in ’24 versus the 30% you saw in ’23? And if the first half auto might be impacted by inventory corrections but perhaps recovering in the second half?
Gideon Ben-Zvi: Okay. So, at this stage, we have kind of limited the visibility into the first half of ’24 and all over ’24. This is why we would prefer this stage not to refer to the product mix between the AV and the automotive. I think that we’ve seen a significant trend in the automotive between ’22 to ’23. I would not expect the same pace on the Mercedes-Benz design also into ’24 because we are fully ramped. And currently, we would not provide any further information on any new designs on the automotive. If we had something to announce, of course, we will.
Suji Desilva: Okay. Great. And one last question, perhaps, to Gideon. With the partnership with Intel IFS, I’m just curious what features of your chip from a technical perspective stood out to them to have them highlight it versus other chips.
