• Home >
• For Developers >
• Numenta Blog

Numenta Business Strategy

We've had some questions on Numenta's business strategy, and how it relates to our licensing practice. This note attempts to answer these questions.

I have been working on a theory of the neocortex and the resulting Hierarchical Temporal Memory (HTM) framework for over twenty years. From the beginning I knew that one day we would be able to build machines that work on principles used by the brain, and that doing so would have benefits for people all around the world. We decided to create Numenta when it became clear - in large part due to the work of Dileep George - that we could finally build technology based on the principles of HTM.

Starting a company like Numenta is no small undertaking so we needed a clear understanding of what our objective was. In this case, our number one objective is to maximize the impact of the HTM technology. The potential applications for this technology are far greater than any one company can explore, and therefore the only way to realize the potential is to create a developer community surrounding it. As I have a lot of experience in creating developer communities through my work at Grid, Palm and Handspring, I was energized about this idea.

We considered a not-for-profit structure. We considered an open-source structure. Ultimately, however, we decided that the way to get the most people working on HTM was within a for-profit framework. People move more quickly in a for-profit environment than an academic one. They are willing to invest more, and sooner, if they believe they have a financial return down the road.

As we looked at how to build our tools and how to structure our licenses, we focused mostly on how to make developers successful - provide them with what they need (source code, documentation, etc.), support them (forums, wikis, educational material), and let them own their own intellectual property rather than requiring them to contribute it back. A fundamental principle of the Numenta business structure is to be a catalyst that enables others to create profitable businesses.

We view NuPIC as an open platform and we are providing substantial access to our platform both through APIs and through source code. Our goal is to not get in the way of a motivated developer, by providing everything they need. NuPIC is not currently an open-source project. We felt it was best for everybody in the community to have an ability to own their own intellectual property, which is difficult in an open-source model.

Numenta is also a for-profit business. This is important for us to attract high caliber employees and to fund the business over the long term. We will generate revenue by selling support, licensing software tools, and licensing intellectual property. The exact revenue mix will change over time, but we always will be seeking to make our developer partners successful as well as be successful ourselves.

Our first software release is limited to research, and is similar to an evaluation license. We didn't feel it was appropriate to charge for this release when both we and our developers are still experimenting with the technology. When we have a better sense of what the first commercial applications are and when they will be ready for deployment then we will consider a license with fees.

In addition, we are building a patent portfolio and trying to establish NuPIC as the leading platform for creating HTM applications. This is why we ask that if you create new tools, and new algorithms based on our source code, they must run on NuPIC. We think that is fair and allows everyone to win.

I am certain we will modify our strategy as we learn and HTM matures, but our strategy will always center on building a community of HTM developers and making them successful. My hope is that in a few years thousands of people around the world will be working on HTM, extending the technology, creating successful applications, and building successful businesses. If at anytime you feel we are not staying true to our goal of building a community of successful developers, let us know.