Rebirth: Starting from Lighting Up the Tech Tree

Chapter 128_Cooperation Proposal

The day after returning to Hangzhou, the cooperation proposal sent by Zhao Wenbo was placed on Zuo Cheng's desk.

This was a thick document, over fifty pages long. Zuo Cheng opened to the first page and began to read it carefully.

The plan is divided into three parts.

The first part involves the joint development of next-generation edge AI chips. StarCraft Technology will provide the underlying architecture for the neuromorphic chip, while 402 will be responsible for AI algorithms and compiler optimization. The two companies will jointly establish a laboratory and share the results.

The second part is the licensing agreement. StarCraft has granted 402 exclusive rights to use the AI ​​capabilities of its neuromorphic chip for applications in satellite communications and the Internet of Things (IoT). The licensing fee is 500 million RMB per year, valid for five years.

第三部分是战略投资。星辰投资402，占股15%。投资金额为1.5亿，与402当前估值10亿一致。

After reading the entire plan, Zuo Cheng fell into deep thought.

The first two conditions are very attractive. Joint R&D would grant access to StarCraft's underlying technology support, while exclusive licensing would give 402 a technological advantage. In particular, the neuromorphic chip consumes only one-thousandth the power of traditional chips. If it can be combined with 402's AI algorithms, it will completely change the landscape of the satellite communication industry.

But the third condition alarmed him. A 15% stake meant that Star would be on the board of directors of 402.

This is not a simple technological collaboration, but rather a case of capital infiltration.

More importantly, the origin of Starry Sky's technology remains a mystery. Neuromorphic chips, brain-computer interfaces, quantum computing… these technologies are at least a decade ahead of the industry, far exceeding current technological understanding. Zuo Cheng doesn't know what's hidden behind this, nor what risks a deep connection with Starry Sky would bring.

But he also knew that the opportunity was fleeting. If he didn't seize it, his competitors might beat him to it.

"Brother Cheng." Han Lu's voice came from the doorway.

Zuo Cheng looked up and saw Han Lu walk in with another document in her hand.

"Zhou Bo from Ginkgo Capital also sent a message, saying he wanted to talk about the next round of financing," Han Lu said.

Zuo Cheng nodded. Ginkgo Capital already owns 10% of 402. If Xingchen joins, the two capital firms will hold a combined 25% stake. This means Zuo Cheng will face greater pressure in making major decisions.

But what worried him even more was Xingchen's background. The company's technology was too advanced, and its background too mysterious. Cooperating with such a company was both an opportunity and a risk.

"What do you think of Xingchen's plan?" Zuo Cheng asked Han Lu.

Han Lu thought for a moment: "The first two points are fine, but 15% is too much."

"How much do you think is appropriate?"

"A maximum of 10%, and no board seats allowed," Han Lu said. "Technological cooperation can be in-depth, but equity cooperation must be approached with caution."

Zuo Cheng agreed with this assessment. While Xingchen's technology was tempting, a company couldn't afford to lose its dominant position.

"Then let's negotiate," Zuo Cheng said. "Inform Zhao Wenbo that I accept the first two conditions, but the equity ratio needs to be renegotiated."

That afternoon, Zuo Cheng had a video call with Zhao Wenbo.

"What are your thoughts on the proposal, Mr. Zuo?" Zhao Wenbo asked.

"I accept the first two conditions," Zuo Cheng said, "but 15% equity is too high."

"So, what price do you think is appropriate, Mr. Zuo?"

"10%," Zuo Cheng said, "and no board seats."

There was a moment of silence on the other end of the phone.

"10% is fine," Zhao Wenbo said, "but I have one condition."

"What are the conditions?"

"If 402 goes public in the future, Xingchen has the right of first refusal to co-invest."

Zuo Cheng's heart sank. This condition seemed simple, but in reality, it offered a great deal of room for manipulation. If 402 went public, Xingchen could continue to expand its shareholding through its priority investment rights, potentially exceeding Zuo Cheng's control threshold.

"Are there any restrictions on the proportion of priority follow-on investments?" Zuo Cheng asked.

"We can only maintain the current ratio at most," Zhao Wenbo said. "That is to say, we can only maintain a maximum of 10%."

Zuo Cheng pondered for a moment. While this condition was risky, it wasn't entirely unacceptable. As long as the proportion was limited, it wouldn't spiral out of control.

"Okay," Zuo Cheng said, "but I want to add one condition."

"Please speak."

"Technology licensing must be exclusive. In the fields of satellite communications and the Internet of Things, StarCraft cannot collaborate with other companies."

There was silence on the other end of the phone.

Zhao Wenbo clearly hadn't expected Zuo Cheng to make this demand. Exclusive licensing meant Xingchen would lose the opportunity to collaborate with other companies, which would be a limitation on its long-term development.

"This condition..." Zhao Wenbo hesitated, "is a bit harsh."

"This is my bottom line," Zuo Cheng said. "If you don't agree to exclusive authorization, then there's nothing more to discuss."

The silence lasted for a long time.

Zuo Cheng waited. He knew the terms were tough, but if he didn't seize this opportunity, 402 would forever be at the mercy of others. While the exclusive authorization limited some possibilities, it bought 402 valuable strategic space.

"Alright," Zhao Wenbo finally spoke, "I'll consult with the higher-ups."

Three days later, the reply came.

Xingchen accepted all the conditions.

10% stake, no board seat, but retains preemptive right to co-invest. Exclusive technology licensing, valid for five years.

This news relieved Zuo Cheng, but also made him feel a bit of pressure. Xingchen's concession showed that they really wanted this cooperation, but it also meant that 402 would be more deeply involved in Xingchen's strategic layout.

Zuo Cheng looked at the final agreement, his heart filled with mixed emotions.

The collaboration with StarCraft will elevate 402's technological capabilities to a new level. The neuromorphic chip consumes only one-thousandth the power of traditional chips, meaning the power consumption problem for satellites will be completely solved. Exclusive licensing gives 402 a technological advantage that competitors cannot catch up to in the short term.

However, this also means that 402 will be deeply tied to the mysterious company, Starry Sky. If Starry Sky's technology source is questionable, or if its strategic goals are inconsistent with 402's, this collaboration could turn into a disaster.

He didn't know if this was a blessing or a curse. But he knew it was the best option at the moment.

"Notify the core team," Zuo Cheng said to Han Lu. "Have a meeting tomorrow to discuss the specific details of the cooperation with Xingchen."

Han Lu nodded and left.

Zuo Cheng stood up, walked to the window, and looked at the city outside.

As night fell, the city lights gradually came on. Zuo Cheng thought of his past life, when he had no resources, no technology, and could only watch helplessly as opportunities slipped through his fingers.

Now, he has the right to choose.

But the act of making a choice itself carries risk. Every move must be made with caution, because no one knows what the future holds.

The collaboration with Xingchen is just the beginning. The real challenges are yet to come.