Intel Corp, the second largest chip manufacture company, has taken over the Israel based AI chip making company, Habana labs for $2 billion. It could be imagined that intel would achieve a remarkable presence in the AI market and a rumor had been spreading around about the takeof intel over Habana. Intel expects to have a revenue of around $24 billion by 2014 where within 2019 its’ expecting more than $3.5 billion from this AI field.
Navin Shenoy, the EVP of intel said this acquisition will be significant in meeting the heterogonous public demand. Habana will work independently as before with its own management system and report to intel. Avigdor Willenz , Habana chairman will be one of the Intel corporation’s senior adviser. Habana receives access to intel’s AI resources that will help to grow up them both.
Intel will now focus on producing different AI chips designed for dedicated problems. Habana chips are designed on deep learning. Habana’s Gaudi AI training processor is thought to be too fast to compete the Nvidia corp’s processors.
In last March, Nvidia took over Mellanox, an Israeli chipmaker company for $6.9 billion to boost up their data center.
Habana’s chairman Willenz sold Galileo Technologies to Marvell Technology in 2001 for $2.7 billion, and Annapurna Labs to Amazon in 2015 for around $370 million.
This acquisition is thought to boost up the AI strategy of intel to build a specialized portfolio. Intel expects Habana would be offering to intel’s data center with a high-performance processor family and improve the business.