Beamr, an Israeli startup that provides video and broadcast solutions, experienced a remarkable surge in its stock value on Monday after announcing a partnership with chip giant Nvidia. The company’s shares soared by over 1,500% in trading, before moderating at the end of the day to close with a jump of around 400%.

Founded and managed by Sharon Carmel, Beamr has been providing high-quality video encoding, conversion and optimization solutions for years. Its clients include content distributors, internet broadcasting companies, streaming platforms and Hollywood studios. In fact, the company won an Emmy Award for its technology development in the past.

On Monday, Beamr announced its joint research project with Nvidia at a conference in Denver. The study focused on facilitating the transition to the AV1 format on a larger scale while maintaining quality. While video usage is growing exponentially, most videos are still based on a 20-year-old format (AVC / H.264) that existed even before smartphones and high-speed internet. The collaboration between Beamr and Nvidia aims to address this challenge by using Nvidia hardware to improve performance while keeping costs similar.

Tamar Shoham, Beamr’s CTO explained that one of the challenges of adopting the upgraded video standard has been the demand for more computing power and higher costs. However, with Beamr’s technology combined with Nvidia’s hardware, performance can be maintained or even improved while keeping costs similar. Additionally, Shoham stated that it was difficult to understand how much additional compression could be applied without sacrificing video quality due to uncertainty in the process leading to cost concerns. This challenge has now been addressed through collaborative efforts between Beamr and Nvidia which will enable businesses to adopt new standards without significant financial burden or learning curve concerns.

Beamr posted revenue of $1.4 million in the first three quarters of 2023 compared to $1.2 million in the corresponding period in 2022 and expects revenue similar to 2022 but growth is expected to accelerate in 2024.

In conclusion, Beamr’s partnership with Nvidia has not only led to an increase in its stock value but also addresses important challenges faced by businesses adopting new video standards while maintaining quality at reasonable costs.

By Editor

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