Nestor's 1990 DARPA neural-chip development contract was increased to ~$1,630,000 in April 1992, with Intel subcontracted for fabrication at up to $1,050,000

nestorni1000darpadefense-fundingsec-filingsemiconductorshistory-of-mlintelcontracts

Nestor, Inc.'s Form 10-K for the fiscal year ended June 30, 1996 gives the DARPA side of the Ni1000 chip's funding a specific paper trail that no trade-press account carried. Nestor entered a development agreement with DARPA on March 13, 1990, "for the development of a neural-network chip prototype embodying the Company's proprietary technology" — the contract that produced the Ni1000. On April 21, 1992, DARPA and Nestor agreed to increase the contract to approximately $1,630,000 and extended the expected completion date to May 1993. Fabrication was subcontracted: in May 1990 Nestor signed a Technology Development Agreement with Intel Corporation to provide design and manufacturing capability against the DARPA contract's requirements, initially costed at $750,000 and increased on April 30, 1992 to $1,050,000. In the fiscal year ended June 30, 1993, Nestor recognized approximately $436,000 in revenue from its DARPA-contract work.

This is the DARPA half of what trade press flattened into a single "$1.2m from DARPA" figure in claim-ni1000-neural-chip-funded-by-darpa-and-onr — a contract that grew through at least one amendment over two years, with its own nested fabrication subcontract, rather than a flat grant. See claim-nestor-onr-arpa-contract-totaled-776167-for-ni1000-board for the separate, ONR-funded contract, and claim-fifth-generation-project-inspired-darpa-strategic-computing-initiative for the Strategic Computing Initiative-era funding context this contract sits inside.