Thank you for joining our presentation today. Before moving to the agenda for today's session, I would like first to introduce our new CFO, Denis Scherrer. We've been in touch with Denis Scherrer for quite a long time, and now we have a chance to have Denis Scherrer as a new CFO since early of March. I would like to let this opportunity for Denis to introduce himself. Denis, do you want to say a word?
Yes, of course. Good morning, everyone. Maybe I will make a long story short. Basically, my background is half in the audit industry as well as the facility management industry. I've spent over 10 years within the Sodexo Group, a facility management group, with position, several position in the U.S., in Australia, and in Asia. More specifically and in relation with Kalray, I have a 15 years semiconductor industry background, starting with Mentor Graphics, an EDA software provider dedicated to the semiconductor industry, software for component design and emulation, for instance. I moved to a company named MEMSCAP. It was a microsystem, MEMS, actually, component designer as well as manufacturer. I did an IPO for MEMSCAP with EUR 150 million raised.
I've spent the last five years in the ecosystem, in the Grenoble semiconductor industry ecosystem close to Kalray, by the way, in the Soitec group, within a subsidiary, designing components as well as licensing IPs. That's how actually I started to hear about Kalray, and that's when I discovered all the interest it would be for me to join Kalray, especially in the current situation after last year acquisition and last year money raised, obviously. It was nice that we've been able to conclude by this recruitment.
I started in March, which was extremely interesting in terms of being able to go through all the financials, all the books, and work very close with KPMG in order to close those books to finalize the 22 figures. I would say that's all what I can say at this stage.
Thank you, Denis. Thanks for this introduction. I'm sure that the audience understand why you're so relevant for Kalray and for helping Kalray moving forward in our growth, in our structuration. As you can see, Denis has a huge experience in both our industry, in semiconductor, and also in accompanying a company internationally. That's why we are very glad to have Denis. As mentioned Denis, I mean, Denis' ramp-up has been very fast. In a way, he was a little bit obliged, but he did very well. As we will see, he will be able to comment in detail our 2022 accounts. Okay. Thanks, thanks once again for being here today. Let me go through the agenda.
For today we want to first, of course, as usually very rapidly, give an update of... or, let's say a reminder of who we are and what we do. I will re-summarize what have been the key facts for 2022. For some of you, it will be just once again a reminder, but I think it's very important to emphasize all the progress we have done last year. I will let Denis go into the details of our financials. We'll spend hopefully a significant part of this call, talking about this year and moving forward. I will share with you what are our 2023 outlooks, what's our strategy for the coming years, and basically what are our perspective.
Starting rapidly about who we are. Once again, I'm sure that most of you know who we are, but just as a summary, as you know, we are a semiconductor company. We actually a spin-off of a CEA, a very large, well-known research lab in Europe in the semiconductor industry. We design one of the pioneer new type of design of processor what are called DPU, so processor which are extremely relevant and efficient to manage and process data.
Around this processor, which is very unique and which is a result of an incentive, an intensive study, investments more than EUR 180 million in the last 10 years, we built a complete portfolio, and I will describe a little bit more of this portfolio next slide, really to address a booming market, which is a market that we call a data-intensive application market. We give again a few example of what is this market and why is it so strategic and so fast growing. A few additional words. We are about 188 people, and it include apprentices.
We have very, very well-known and supportive shareholders like NXP or Safran or Renesas and Mitsubishi who invest in the company because they've seen that the technology extremely relevant for them, and that they wanted to make sure that this technology will be available in the coming years for their own product. We have also the pleasure to have some very important partners, I will come back on that, like Dell, IBM. You would may have seen some announcement with AWS. A couple of large, very large companies working with us, and once again, because they realize that what we do, what technology we develop is and will be very instrumental for them in the coming years. Of portfolio, as I said, once again, just to go rapidly about our portfolio, describe our portfolio. Semiconductor company designing chip.
As you certainly realize, you don't sell a chip as a standalone product. You need to build value around this product and also to help your customer to reduce barrier of introduction, barrier of adoption. In the last many years, we actually build around this DPU a couple of things to actually help us deploying this technology on the market. First thing we've done has been to create what we call cards. Cards are actually the way you use processor when you use servers. The cards are the cards that are plugged into servers. Then on top of this card, you have to provide also what we call both software, so a stack of software to help customers to integrate your hardware into their own system.
Also we provided and we have developed with partners what we call reference solution or reference platform, so that our customer, they can easily basically copy the system, use our technology and build their own solutions. This portfolio today is a result of intensive investment and development, including both hardware and software.
Especially the software has been complemented, through an acquisition that we made last year with a company called Arcapix, which was very interesting because it actually brought into our portfolio a set of software stack, which are very complementary to what we've done, and which basically combined with the hardware provide a complete package, easy to use, very efficient, and which makes us today a pretty unique company, having in terms of mission, a very simple mission, which is to process data smarter, more efficiently, more securely, no matter where the data is. Because today, the data can be in the cloud, can be on-premise, can be on the edge, so you need to be able to process this data wherever it is in the most more efficient, and less power and remote.
In terms of market, all the industries, all the segments, verticals, having a lot of data to process very fast. That includes data centers, obviously. Also companies in the domain of life science, finance, HPC, AR, media, a lot of data to process as efficiently as possible. As well as what is called today the edge computing, which embraces the 5G telecom, the automotive, also the industry with smart vision. All of these domain where data is extremely important is at, actually at the heart of a business of a company and needs to be managed as efficiently as possible. Okay. Let's, let's come back on key facts for 2022. Let me switch off my phone. Sorry about that. Here we are. Okay.
2022 has been a very exciting year. 2022 for Kalray has been really a change in dimension, and let me explain why it has been a change in dimension. The first reason is very simple. If you look at our financials, and we'll go into details later on with Denis, you will see that basically we more than multiply by 10 our revenue this year. What we have been selling has been both our hardware, namely the acceleration card called K200-LP, with our processor called Coolidge. We've been selling our reference platform, including a platform called Flashbox that we designed with one of our partner, called Sanmina, a U.S. company.
We've sold also the software that we acquired through the acquisition of a company called Arcapix software solution. We combined also, so we sold not only these pieces as standalone pieces, but also this has been actually a significant part of our revenue. We combined these product together because they make a lot of sense to combine them sold this as a bundle. In addition to increasing our revenue, we were able also to consolidate significantly our EBITDA, since actually we improved our EBITDA by more than EUR 3 million, from EUR -5.8 million to EUR -2.7 million, which is also a strong sign that we are moving to profitability. This is, of course, one of the main goal.
This was a major step moving forward. In term of split between the different products and between the different software, hardware solutions, you can see that we've got a pretty balanced mix of hardware and software. About one third of hardware, two third of software, which is actually, I mean, a pretty standard in the semiconductor industry. As you can see, even company like NVIDIA actually, they provide hardware but also a lot of software, the solution with the hardware. Because that's the best way for it to sell hardware, to make hardware easier to adopt, and also best way to add more value with the hardware.
We will continue, I mean, bundling hardware and software together because that definitely makes a lot of sense and also allow, also, allow to grow faster, of course, the revenue. In terms of geographical breakdown, very balanced too. So if, I mean, combine U.K. and other countries in Europe, you see that it's. about 2/3 of our sales, then it will be more than 1/3 in U.S. We definitely see a lot of growth in U.S., and we continue, I mean, investing a lot in U.S. In the coming years, what we see is that U.S. may be become even grower, bigger, in our breakdown.
Basically, I mean, maybe 40%-45% US and about 50% Europe and rest of the world. What happened 2022 also very, very instrumental in our growth has been, as you may remember, the signature of very, very large contract with very large US Nasdaq-based company. I will not come back in the details of this deal. I think we commented this deal a lot in the past sessions. Just to remind that it is, of course, very instrumental for a company like us to show that we can be actually following a lot of benchmarks. We can be adopted by a large company.
That is a very good evidence that, first, our product is mature, second, that it is competitive, and that the company itself is mature enough to be selected by very large players. This contract, I will come back on what we're doing right now, and everything is on track. This year is a transition year, and we expect when we will be in volume with this customer re-revenue such as a couple of $10 million per year. Third important fact that happened 2022, and I will come back because it has, of course, an impact for 2023, has been striking a global partnership, especially with Dell. Dell Technologies is actually the leading company in the storage space, more than 20% of the market.
We strike a deal with Dell being selected as a key partner, what they call a core partner. Dell, I will come back on that, is reselling right now our product on the market. Which, of course, for us a huge opportunity to deploy much faster at a lower cost in term of recruitment, in term of sales force, in term of pre-sales force to deploy massively on large scale our product worldwide. Fourth, very important evidence that we are changing dimension. It's about not only the financial, but also the team that we're building. So today, we are 179 employees. It compared to 100, a little bit more than 100 last year.
It includes both recruitment, through Kalray historic, through organic recruitment, and also the acquisition of Arcapix, around 50 people. What is also very important, more than the number is the split between the different role in the company. Since now we've got a much more a part of employee which are focusing on sales, on pre-sales, and also in support operation, which is, of course, obviously, necessary when you start growing very, very fast your revenue and you want to move forward. These were the key four facts I wanted to emphasize before we move to explaining how these key facts will have an impact and will help us achieve our aggressive objective for 2023.
Before doing that, I would like to let Denis go into the detail of the financial for 2022. Denis, floor is yours.
Thank you, Éric. I would like to start by a short introduction regarding the fact that we are disclosing the consolidated statement, which are integrating the operation from last year acquisition since the 15th of April last year. Our accounts have been closed by the executive boards after examination by the supervisory boards, which took place last Friday, April the 14th. The audit procedure have been carried out, and the certification reports are under processing by KPMG and will be published next week. The income statement showed on this slide, of course, shows a very significant increase in the revenue. I won't come back on the EUR 16.4 million net sales just described by Éric.
You can see that the subsidiaries income are stable at EUR 2.3 million. We have capitalized more R&D than the previous year, amounting to EUR 11.7 million, and it's mainly the continuous R&D effort on Coolidge 2 as well as engineer. The total revenue went from EUR 12 million to a little bit more than EUR 13 million. On the expense side, the cost of sales, as well as the operating expenses obviously are including all the operation generated by the new net sales from the acquired companies. The cost of sales is a consequence of the increase of the sales. We show a gross margin at..
56%, which is in line with what was expected and what was communicated in January. The salary and contribution growth from EUR 9.5 million - EUR 16.3 million, it's basically the increase of our headcount from 103 employees to 179 employees. That described earlier by Éric, it includes 50 people from the acquisition. The EBITDA is significantly improved from EUR 5.8 million to EUR 2.7 million. The depreciation line shows EUR 4 million additional depreciation expenses, and it's basically the Coolidge depreciation of the technology which is now in mass production since the end of last year. At the end, the net result is EUR 15.5 million, very stable compared versus to year 2021. We can move to the cash flow statements.
As a consequence of what we describe in terms of sales increase, we have a gross margin of EUR 7 million as well as OpEx for EUR 26 million. Our change in working capital is positive now and the R&D subsidies, as the subsidies are described in the income statement, are pretty stable. Our operating cash flow is slightly lower than last year, but it's mainly due to less tax credit income, cash income. We did not actually process any financing of this tax credit, unlike the previous year. The CapEx level of cash, the cash expense CapEx, are EUR 2.9 million versus EUR 5.3 million. It's mainly because we did not have any tape-out expenses in 2022.
In term of financial cash flow, we have a net cash flow from investor of EUR 36.7 million, which includes the EUR 20.4 million capital increase, which took place in December last year, as well as EUR 8 million from convertible bonds, already disclosed and communicated last year. At the end of the year, we end with a EUR 32.2 million cash position. Now in the balance sheet... Thank you, Éric. The balance sheet, the total assets have significantly increased, mainly due to the accounting of the first time consolidation difference we can call it goodwill, for almost EUR 14 million, as well as obviously the EUR 20 million additional cash. We have a total asset for over EUR 87.6 million.
In terms of liabilities, sorry, we have the R&D refundable advances at the same level versus last year. The bank loans are amounting to EUR 4.5 million, as well as some EUR 2 million additional convertible bonds. The other debt line, EUR 15.9 million, includes EUR 14 million corresponding to the earn-out price complement related to the last year acquisition. These earn-outs are based on presence and targeted results. This is basically what I wanted to share in terms of financials.
Thank you, Denis. If there is any question, we will of course answer this question at the end of this presentation. Let me now just say a word. I mean, we just wanted to share this slide with you just to complement what mentioned Denis about the subsidies, and just to re-insist that we're lucky to have some strong support from the French administration and Europe. As you can see, with a certain number of projects, we already share that last year.
Just to re-emphasize that, and we see a clear, a strong willingness from both, I mean, the French government and Europe to continue supporting a company like us, which is perceived as very, very important and strategic, especially in the current worldwide situation. So it was just to emphasize this as part of 2022 financial dates. Now, moving to 2023, so let me share with you where we are, what we intend to do and just also re-clarify what are our objectives for this year. Before doing that, I just want to re-clarify, if not clear, what are our markets and how fast these markets are growing.
Basically, as you can see on this slide, we are positioned on three main markets, having a strong demand to process data in a much more efficient way than it is today. The first one, which is the one we invested first and where we deployed our solution first, is about storage. Storage and what was Arcapix. This is, as you can imagine, I mean, storage is growing very, very importantly, and here we really focus on fast storage, especially storage around a new technology called NVMe. Kalray is positioned today as a leading provider of technology to help the enterprise, to help the cloud service provider to adapt these new type of memories so that they can basically democratize their usage and deploy their usage in their solution.
That's what we see right now, and that's one of the reason of our growth right now. This growth will definitely continue because at the end of the day, the whole industry, we are little by little move to this type of memories. Second great market, and this market will especially actually be addressed with our new generation of product that we are launching this year. We come back on that, which is Coolidge 2, is about machine vision, even if we are already very much involved more globally in the HPC industry. This is there again a market which is. I'm talking about the SAM market, which is growing very, very fast.
The second one and the third one actually, where Kalray is positioned, it's a little bit early stage for us, but we are already in 2022, and we continue 2023 working with especially large carriers like Orange. We're gonna form this type of carrier. It's about telecom and 5G, where our technology, our product extremely relevant. The main issue from this industry being to be able, once again, to process data not only faster, but by consuming much less energy than it is today. How about 2023? 2023 will be, once again, a major step for us, a major step in building a leading, highly profitable business in this fast-growing market of data processing. How are we gonna do that, and what are more specifically our key objectives for this year?
We basically define mainly four key objectives. The first one is abuse. It's about business growth. We already mentioned these objectives. Our objective is to reach EUR 40 million revenue this year. We confirm this objective, and we'll give you a little bit more detail later on how we intend to secure this, yeah, at least EUR 40 million revenue. Also, I will mention that not only our objective is to reach this, at least this EUR 40 million revenue, but also to close strategic deals as we did last year. Second key objective is about the team. When I say team, it's about making sure that we've got the foundation to sustain this growth and beyond.
I will come back on what we're doing right now in terms of recruitment, where we recruit, and what for with what type of priority in term of recruitment. The third one is about our offer. We have been working a lot, as I mentioned previously, to really combine the soft and hardware together to be able to have a very powerful package really to use for our customers. We have today a very comprehensive hardware and software offering that we can easily deploy to the market. We will continue doing that this year. We actually will especially launch two new product. One is called Engineer tool. Second one is Coolidge 2. I will come back on that in the next slides.
Having said that, we will continue, and this is one of our top priority, which we're very cautious about, of course, about our cash, and we will continue especially to improve our EBITDA as we did last year. Going into more in detail about the strategy for our business growth. We have defined mainly three focus in term of business growth. The first one is to, of course, continue and execute the major contract what we signed last year. Also to continue, I mean, striking deal with strategic partnership, to that may not have a huge impact in term of revenue this year, but that will be instrumental for us in terms of visibility of a company and will be instrumental in the coming years later on.
Zooming on the current contract that we signed last year, as you may remember, it's a very large contract with a very large player in the American-based, Nasdaq based. As you may remember, 2023 is a year where we are working with them to build the product that they need. You may remember that right now we are actually developing a card which actually embed four of our chip, that we've called it two chip, but I will present just later. We are completely on track, and they will start the evaluation by September, October. The goal is that they run all the evaluation before we end the year. Okay. About EUR 1 million under our contract for this year.
Of course, what is exciting is moving forward is about selling 1,000 and 10,000 cards. It will be this card with these four chips. This is really, I mean, very, very important for us, one of the top focus, securing the existing contract that we mentioned and that we signed last year and of course, extending to other strategic deal. Second key focus will be especially working with our strategic partner to really leverage their reach and especially Dell. As mentioned, Dell is the leading storage provider worldwide. Huge sales force, huge machine in term of sales. We have a chance to have very close relationship with them. Today, Dell is reselling our product.
We already actually, since we signed this partnership, made several million of sales with Dell. What we've been doing in the last few months has been to very regularly organize event roadshow with the sales force, with the pre-sales force, so that little by little their sales force better know what we do, better know our product, our value, and push this value, of course, combined with their own product to their customers. It has been extremely successful. We've been, we organized about 10 roadshows in the last few months. For starter in U.S., like in Boston, Chicago, Seattle, to name a few, and then also a couple of them in Europe. We, it was start of this year in London, in Paris, and then in Frankfurt.
We start seeing the definitely the result, having a lot of new deal coming in the pipe. We are very excited and very confident that these new deal will convert, especially in H2. We really, I mean, expect a very significant growth through this partnership, especially in H2, starting in H2. The third one is the strategy we have around media. It happened, as you may remembered, that one of the top market addressed by the company we acquired, Arcapix, and with a brand name called Pixitmedia, was the media industry. Why media is interesting, why do we want to continue investing and generating revenue in the media?
The reason is that media actually is a very exciting market for us because it's a market which is very advanced in term of need to manipulate, to process data very efficiently. As you can imagine, when you create content, there are a lot of step, a very complex workflow where you need to store data in different location, you need to secure access to this data. You need also, of course, to run some very extensive processing. Actually it's a very, very interesting market for our technology. It's also a very interesting market to test our technology, to deploy technology first and then to deploy on the other verticals. That's what we are doing right now. As you may have seen, so we announced a few days ago that we have a strong presence in NAB.
NAB is a very, is the most actually well-known, show in the media and entertainment space, based in Las Vegas. We actually announced a few very interesting news that I'm gonna comment in the next couple of slides. Before doing that, a word about the recruitment. I mentioned that recruitment and team was a top focus and a top objective for this year. As you've seen, last year was already a very important step in growing the organization, in growing the sales and pre-sales organization. This year, what we intend to do is first to, of course, consolidate the sales, pre-sales and operation teams.
We have more and more customers, so even if our business is very scalable, we of course need to make sure that we provide the support that our customer needs to reach, of course, the best customer satisfaction. At the same time, what I really want is, and that what we already started, and Donnie actually is part of this process, is to recruit a global exec team of people, very senior in our industry and geographically based worldwide. We really want to have a very international team of senior people. We have a couple of already very high-profile who joined the company. We'll certainly make some announcement to explain who is joining, Gary and so on.
It's not part of this. We did not want to spend too much time on that topic today. Just to share with you that that's definitely a very important objective for us, and we believe that's very important to have a very, very strong foundation to move forward growing this year and of course, in the coming years. The third objective, as I mentioned, was to continue leading the base, having the best product, creating the most added value. Also in addition to added value, what we want to re-insist in the way we develop our product is about ease of adoption. Okay? What we see is that the industry is facing a huge challenge to process and to manage this flow of data.
What's very important is to make the life of our customer easier, and in a way to make our technology transparent. Okay. We've been focusing on that, and the acquisition of Arcapix has been definitely in line with the strategy, and we continue doing that. By combining our solution, both software and hardware, to make something which is very efficient, but also very easy of adoption. As part of that, we will announce two product. One has been actually announced a few days ago, during this show that I just introduced, just mentioned previously, called NAB. We announce a new evolution of our product called Engineer. Engineer is a very interesting product because it's actually what we call a data management platform.
Data management platform is actually a layer of software which allow customer having a lot of data, a lot of complex workflow to easily actually manipulate data, exchange data from one team to another, from one location to another. Doing that, having an access which is completely under control and which actually make this access to the data very efficient and transparent for the content creator or for data analyst or for the scientist. This is a very important piece of software, and more and more company are willing to have this piece of software. Not pure raw storage, but something which is smarter to help them store their data, manipulate their data much more efficiently and easily. That was Engineer.
With Engineer 2, we really made a major step in two ways. The first one has been that Engineer 2 has been designed so that now it's very easy to integrate for our customer cards. Of course, you can see the rationale here. What is the value brought by our acceleration cards and with our processors are mainly two value. First one is to increase and to actually make the adoption of fast storage much easier for our customers. It's about performance, it's about also reducing the total cost of a solution. The second usage of our card is about analyzing of the content, what we call metadata, which is very, very interesting, especially with the capability of our card for AI, for data processing.
That is of course very important to be able to treat this data in as transparent way as possible to a customer, but in a as more efficient as possible. Engineer 2 is not only a very important and very exciting product for our customers, but it's also a very interesting platform for us to push not only our software, but also our hardware. The second key product we will announce in the coming weeks is Coolidge 2. Coolidge 2 is the new generation of our processor. As you know, Coolidge 1 is the one which is today in production, used by our customers. And Coolidge 2 will actually be available, the first sample, this summer. We are finalizing the design, so what we call the tape-out, which is the stage when you basically start the manufacturing.
We work with TSMC, the tape-out will be in the next coming weeks. The first sample will be available by this summer. Okay. In terms of market, what is very interesting with Coolidge 2, we will come back on what are the key advantage of Coolidge 2. Of course, more performance, less power consumption, a very significant improvement here. Also a certain number of function that we added in order to really make sure that we are the most relevant on the target markets that I just presented before.
Really what is very important for Coolidge 2 is that it will not only bring additional value on the current market, especially on the storage market that we address, but we also open doors to the market we've been working on for a couple of years now. Namely the machine vision AI and the 5G telecom, which are a market that really will especially benefit from the additional performance and features that will be available with Coolidge 2. Very exciting. Very again, we may not have time to go too much into the details. We have the opportunity to come back on Coolidge 2, certainly in the next session.
I just wanted to, of course, give you the perspective for this year will be very exciting in terms of new product launch. As a conclusion, why we are right now, why Kalray now is very an interesting opportunity for investors. It's actually very simple. I think that it's obvious that market, the need in terms of smart, efficient data processing is obvious. You can see a lot in the press in terms of more data to process, AI, new function, new product, ChatGPT, for example. New demand in terms of less power consumption. We are really in the middle of that demand, and this demand can be treated only by having unique innovative hardware. That's where we are.
The second thing which is very unique with Kalray is that actually designing hardware is very long. It's a very long process, very complex, very of a very huge. We are there now with a mature product. As you can see, we can see that with our financial, can see that with our product, can see that with the contract we signed. Our product is mature, it's available, and actually new generation, very exciting generation that's coming, moving forward. It's good to have market, it's good to have product, but as a small company versus the big, giant, you see, of course, what is very important is to have a strategy, and that what I explained to you, but also partner in place to push our products, our product on the market. I think typically, I mentioned Dell.
Dell is a major player in these industries. Of course, you can understand the value it brings for a company like us to have a partnership like Dell to push our product on the market in terms of both credibility and sales force. Fourth one, of course, once again, it's about credibility. A lot about a company like us is about credibility. To reach and to be able to convince customers is not only benchmark, it's also being credible, not be the first one to use Kalray. There again, it's very exciting because now we've got an example of large customers having selected Kalray. Of course it's very, very interesting to enter a kind of a virtuous circle where we customers, new customers can be more comfortable because they see that we will not the first.
be the first one. Also the last point I want to emphasize is that, Kalray actually today is the only European provider of this type of technology, okay? This type of technology are not only very, very strategic, they are also very difficult to build. We are very unique on the European landscape. One of the impact for that is that, as I mentioned previously, we see a lot of support from the different administration, both in France, in Europe.
We have a couple of projects ongoing. These are also something important for investors because you see and you will see that we've got the opportunity to have access to some funding which are non-dilutive and that are very interesting source for us to continue investing and being ahead in term of development. I hope that was a good summary of where we are right now. Now I would like to open the floor for any question you may have.
Ladies and gentlemen, if you would ask to ask question, please click the Raise Your Hand button on your computer or press star six on your phone keypad and wait for us to speak to you. Mr. Gautier, you can switch on your microphone and speak.
Yes. Thank you very much for your presentation. I had a question, it's about AccessCore. I was wondering if since the acquisition of Arcapix, you had an impact of your of the on the sale of your logistic for your offer, AccessCore.
Okay. First, I mean, I, I may need to explain what is AccessCore to the rest of the audience, and I thank you because if you know AccessCore, that means that you, I mean, follow closely what we do, so well done. AccessCore actually is the name of a software running on the chip. Okay? It actually includes two parts. Something that we call an SDK.
An SDK is a set of tool that we provide to our customer when they want to develop them by themselves, the software or our chip. It's also a set of what we call firmware libraries. For example, we've got a Linux running on our chip, and that's part of AccessCore. So thank you for this question. I mean, for those who are interested, it happens that the when we say software, and when we I mentioned that we have the software from Arcapix, and when we sell software about AccessCore, these are different software. AccessCore is about software running our chip, okay? It has been designed by the Kalray historic company.
It will continue being developed by our core development team, and these are software that run on the chip, and all can be used for our customer when they want to change the software of the chip. Whereas the software that we acquired through Arcapix are what we call high-level stack, which are not running at all actually on the chip but are basically the glue between our chip and the end user application. This glue is very important because actually, as you can really understand, it helps our customer to directly connect the application to, at the end of the day, our hardware. Okay? To answer your question, AccessCore is still there. It's still important. It's always, every time we sell a chip, AccessCore is part of it.
It's very complementary to the software we acquired through Arcapix. Thank you very much.
Would like to ask a question, please click the Raise Your Hand button on your computer, or press star six on your phone keypad and wait for us to speak to you.
Yeah, we had a lot of question last year, last time, maybe we exhausted the list. Yes, Gautier?
Thank you. I go again. I understood that with Coolidge 2, you tried to develop a chip with a focus on the media sector. I was wondering if with Dolomites you will try to focus another sector or what will be the specificity of Dolomites in two years?
Maybe first thing I would like to maybe reclarify. Coolidge 2 has not been designed for media. Okay. As I mentioned, Coolidge 2 has been designed for what I described in the presentation for storage. Okay. For what we call smart vision AI, which is actually very much related to edge computing, to analyzing data on the flow, and to 5G. Okay. Of course, these capabilities, especially storage analyzing of data flow, is very relevant for the media industry. It has not been designed specifically for the media industry. Okay. Having said that now, moving to Dolomites. Dolomites really, I mean, we're very, of course, very excited about Dolomites. I can say a word about Dolomites.
Dolomites we will have a chance to, of course, to give you a little bit more detail about Dolomites. Dolomites is very interesting because of course the idea is to continue growing the different verticals that we can address, and also increasing the value of the performance and so on. It happens that Dolomites™ will actually leverage a new approach that start to be implemented in the industry. We've been working with new approach with R&D labs for a couple of years, including SEA and so on, and this approach is called the chiplet. Okay. I don't know if how familiar you are with chiplet, but that's very exciting technology for us. Why? Because chiplets actually allow to basically build your chip like a Lego. Okay?
I will not go into too much detail about how it works, but that means that we will build a kind of piece of Lego, which with our core technology, and then we will be able to build a different package, different chip, where we can put more or less of this Lego, and that we can also combine with a certain number of additional features depending the market that we address. Without going into the details of this technology, why is it important to understand that, to answer your question? That means that actually we will have much more flexibility in term of which kind of market we can address. I give you one example. Today, Kalray technology is extremely relevant for artificial intelligence.
We decide to focus on, as you can see from my presentation on smart vision and AI, for what we call inference. Basically where the data is generated, to typically for industry or telecom use cases. The reason for that, because we believe that this is a niche which is very interesting for us. Okay. We really focus and customize our chip for this usage, and one of the decision has been, for example, not to use very expensive, memory. So very proper memories called HBM, which are very expensive. You may see from NVIDIA when they run ChatGPT, they've got HBM, which makes their solution very expensive but very efficient. Okay. We decide, once again, it's a strategic positioning.
We decide not to go in this direction, but really to focus on where we are today with our solution where we can add value. With chiplet, actually we'll be able to build a chip with HBM or to build a chip without HBM. Okay. Depending where the customer attraction is, we'll be able to assemble like Lego and to address a wider set of vertical with our core technology. Okay. Very exciting. I will mention more later on.
Thank you very much. Very clear.
Another question. Mr. Labbé, you can now switch on your mic, and you can speak.
Thank you very much for your presentation. It was very clear. You perfectly describe, your, your target and your development, in the U.S. Is it possible to have a small descriptions of what could be your European business and sovereignty business? I think you still have, Bpifrance in your, in your capital, especially, Definvest, for instance. You have also MBDA. Is it possible to have a small descriptions of what could be your European sovereignty business and maybe what could be the link, another questions, you could have with Atos at the moment?
Okay. Okay. Thank you very much indeed. I think that's a very good question. European sovereignty, of course, is, can be applied to many domain and to many markets. You can, so you mentioned MBDA, it's more about the capability for French or European company to design new generation of defense system. Okay. Then you can mention Atos, for example, for more, something about the sovereign cloud or making sure that we have data center where our data protected and using local technology. Okay. The two apply to Kalray. Typically we are. In fact, we've got a discussion ongoing with Atos, especially in this domain to, basically to build European sovereign data centers with European technology.
As you, I think, understood through what I described through presentation, of course, in term of storage, in term of acceleration card, basically in any data center you need solution like Kalray. We are very, very relevant, and we are actually the only provider of networking and storage card for data centers in Europe. Then the second domain is the one you mentioned with MBDA, with Safran, you know. For, also for all these company who actually need very powerful chip that they will embed in their system, it can be airborne system or on the ground system.
Because the technology of course, and I'm sure you've got plenty of example in the news every day right now with what's happening worldwide require this type of technology for defense industry. Defense and aerospace and all the, you know, strategic industry require this type of technology. You can see that there is a wide range of application of our technology from a high sovereign data center to a very, very specific defense system. That's the reason, of course, that we've been happy to see the support of funds like Definvest from the French Defense Ministry, as well as Bpifrance.
Thank you.
Welcome. Maybe a last question. Do we have a last question before we stop and before everybody can have a lunch? Nope. No questions. Okay. In that case, I really want to thank you very much. Thanks for your time, we are looking forward to our next session very soon. Have a good day. Have a good lunch. Bye-bye.
Thank you. Bye-bye.