Intel Buys Israeli AI Chip Startup Habana for $2 Billion

Intel Buys Israeli AI Chip Startup Habana for $2 Billion

Habana, founded in 2016, will remain an independent business led by its current management team

Highlights
  • Intel said the purchase will help it speed up computing power
  • The move is part of Intel’s strategy to strengthen its AI business
  • Intel expects AI services to generate $3.5 billion in revenue this year

Intel is paying $2 billion (roughly Rs. 14,200 crores) to buy an Israeli startup that specialises in processing chips for artificial intelligence.

The California-based chipmaker said Monday that the purchase will help it speed up computing power and improve efficiency at data centres.

The move is part of Intel’s broader strategy to strengthen its AI business. The company expects AI services will generate more than $3.5 billion in revenue this year, an increase of more than 20 percent from last year.

Habana, founded in 2016, will remain an independent business led by its current management team in Caesaria, Israel, according to Intel. The startup’s first processing chip, the Goya, is commercially available. Its second was announced earlier this year.

“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 centre,” 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 centre with a high-performance training processor family and a standards-based programming environment to address evolving AI workloads.”

Author: Anindita Ghosh