Here’s an interesting investing move from two industry heavyweights.

Microsoft co-founder Bill Gates, Uber co-founder Travis Kalanick’s 101100 fund and current Uber CEO Dara Khosrowshahi have invested in Luminous, a small start-up building an artificial intelligence chip.

The investment shows key figures in the technology industry believe there is still an opportunity for a new standard to emerge when it comes to hardware for AI, which can be incorporated into a variety of software applications.

IoT will be the next driver of AI innovation. By 2025, there will be 55 billion IoT devices (Business Insider Intelligence), and  Due to to latency, cost, privacy and connectivity issues, being able to analyze data at the edge where it’s created is critical because it improves the speed of analysis and decision-making.

Data analytics has generally relied on human-defined classifiers or “feature extractors” which are rules that can be as simple as a linear regression, to more complicated machine learning algorithms. But can you imagine building a human-defined perfect rule-based system to model everything?