Data Center and Critical Infrastructure

Intel acquires AI chipmaker for about $2 billion

18 December 2019

Intel Corp. has acquired artificial intelligence (AI) chipmaker Habana Labs, a maker of deep learning accelerators for data centers, for $2 billion.

The acquisition fits into Intel’s new strategy of playing to data centers and enterprise markets as well as aligning with the company's communication strategy.

“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.”

As such, Intel expects to generate more than $3.5 billion in AI-driven revenue, up 20% from last year.

Habana will remain an independent business unit and will be part of the Data Platforms Group and the company will continue to reside in Israel where Intel has a history of investment, the company said. Previously, Intel’s venture capital wing was an investor in Habana.

To contact the author of this article, email GlobalSpecEditors@globalspec.com


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