Intel Buys AI Chipmaker Habana Labs at Value of $2 Billion

Intel Buys AI Chipmaker Habana Labs at Value of $2 Billion

This morning Intel announced a statement heeding that it has picked up Israeli AI chipmaker Habana Labs. The deal, estimated at around $2 billion, is the latest cut of some massive investments in artificial intelligence that includes names like Nervana Systems and Movidius.

In July, Habana introduced its Gaudi AI training processor, which the Tel Aviv startup promised was able to beat GPU-based programs by 4x. The corporate has been rumoured to be a goal for an Intel acquisition for some time now, as Intel appears to get out at the entrance of the AI market. The corporate clearly doesn’t need to repeat previous errors like missing the boat on mobile.

To this point, the strategy appears to prefer it simply might pay off, giving Intel a marked benefit in a class it notes will probably be priced around $24 billion by 2024. In 2019 alone, Intel a note, the company expects to generate more than $3.5 billion in “AI-driven income,” a 20% improves over the year prior.

For now, Intel expects to operate Habana as an impartial business unit, maintaining its present management staff on board, with operations nonetheless based totally in Israel. Habana chairman Avigdor Willenz will stay on to advise the companies.

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