Intel Acquired AI Chipmaker Habana Labs

Intel has acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for the data center for approximately $2 billion. The combination strengthens Intel’s AI portfolio and accelerates its efforts in the nascent, fast-growing AI silicon market, which they expects to be greater than $25 billion by 2024, the company said in a statement.

“This acquisition advances our AI strategy, which is to provide customers with solutions to fit every performance need, from the intelligent edge to the data center,“ said Navin Shenoy, executive vice president and general manager of the Data Platforms Group at Intel. “More specifically, Habana turbo-charges our AI offerings for the data center with a high-performance training processor family and a standards-based programming environment to address evolving AI workloads.“

Intel believes that harnessing the power of AI to improve business outcomes requires a broad mix of hardware and software and full ecosystem support. In 2019, Intel expects to generate over $3.5 billion in AI-driven revenue, up more than 20 percent year-over-year. Habana will remain an independent business unit and will continue to be led by its current management team. Habana will report to Data Platforms Group. This combination gives Habana access to Intel AI capabilities, including significant resources built over the last three years with deep expertise in AI software.

Habana chairman Avigdor Willenz has agreed to serve as a senior adviser to the business unit as well as to Intel. “We have been fortunate to get to know and collaborate with Intel given its investment in Habana, and we’re thrilled to be officially joining the team,“ said David Dahan, CEO of Habana. “Intel has created a world-class AI team and capability. We are excited to partner with Intel to accelerate and scale our business. Together, we will deliver our customers more AI innovation, faster.“