Founded in Minnesota in 1999, the company moved to the Portland metropolitan area where it remained until it completed a reverse merger with Sajan, Inc. in 2010.

Robert Warren (Bob) Johnson and Douglas Pihl started discussing the formation of a company in 1999 to design a new type of digital signal processors (DSP) microprocessor chip, and founded MathStar the next year and began raising funds.

[2] At one point in 2003 the company planned to merge with Digital MediaCom as MathStar still worked to finish developing its chip.

[9] MathStar raised an additional $12.6 million by selling stock and warrants in September 2006, and used part of the proceeds to increase staffing to 56 people.

[13] On May 10, 2007, they announced the company only had enough operating capital to stay in business until Labor Day, and that to raise funds they would sell another $25 million in stock.

[26] MathStar rejected another bid from PureChoice in November 2008,[28] while a shareholder requested the company vote on liquidation in February 2009.

[30] Shareholder Joe Gensor demanded the company's board vote on liquidation or face legal action in May 2009, the same month MathStar again rejected a merger proposal from PureChoice.

[34] MathStar's board urged rejection of the Tiberius bid due to ongoing negotiations concerning a merger with yet another private company, or the possibility of resuming operations.

[33] A week later MathStar delayed a vote on whether or not to liquidate,[35] and two days later officially rejected PureChoice's fourth offer.

[36] Tiberius then increased its bid in July 2009 by offering to buy all outstanding stock, instead of just a controlling interest,[37] which MathStar's board again rejected.

[38] Later that month, MathStar announced they were working on a possible merger with Sajan Inc., leading founder and CEO Pihl to resign from the company.