SAN MATEO, Calif., Jan. 13 — GoPro Inc. is making a sharp turn away from its rugged action cameras and into the artificial intelligence data center market, a strategic pivot that sent its shares up 40% in a single day. The company, headquartered here, said it will repurpose its expertise in edge computing and image processing to develop specialized hardware and software for AI data centers. The target: the growing demand for efficient AI inference and training infrastructure.
Think of it like a mountain-bike suspension maker applying its damping know-how to high-performance race cars. GoPro’s core skill has long been squeezing high-performance video processing through low-power chips inside small, battery-limited devices — precisely the kind of efficiency that AI data center operators are chasing as power costs balloon.
CEO Nicholas Woodman, who founded the company in 2002, said the move leverages GoPro’s core competencies in high-performance, low-power processing to address the needs of AI workloads. Specific financial terms and product details were not disclosed in the announcement.
A familiar pattern in a hot market
The stock surge reflects investor enthusiasm for AI-related ventures, a trend that has boosted numerous tech companies in recent months. But GoPro’s market capitalization remains modest compared with AI leaders like Nvidia and AMD, which have experienced massive growth amid the boom. The pivot is a bid to diversify revenue streams after years of declining sales in the company’s traditional camera business.
Revenue fell from $1.16 billion in 2021 to $1.0 billion in 2023, and GoPro reported a net loss of $53 million in 2023. GoPro, which went public in 2014, has faced increased competition in the action camera market from rivals like DJI and Insta360.
The company has historically relied on its Hero series cameras and has explored other ventures, including drone technology and subscription services — but this marks its most significant strategic shift yet.
Challenges ahead
Industry experts caution that entering the AI data center market, which is dominated by established players with deep expertise, poses significant challenges. GoPro’s experience in low-power, high-performance computing for video processing could offer a niche advantage, they note. The announcement came as part of a corporate update, and GoPro’s shares closed up 40% at $1.68 on the Nasdaq.
The company plans to provide further details in its upcoming earnings call scheduled for February 2025. The practical upshot for investors and tech watchers alike: a consumer hardware name best known for cameras strapped to surfboards and helmets is now betting its future on the infrastructure powering the AI boom.
Whether that bet pays off will start to become clearer next month.
