US chipmaker Intel has acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for the data centre, for approximately $2 billion.
In a statement issued yesterday, Intel says the acquisition will strengthen its artificial intelligence (AI) portfolio and accelerate its efforts in the nascent, fast-growing AI silicon market.
According to Intel’s estimations, the AI market will be greater than $25 billion by 2041.
“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,” says Navin Shenoy, executive VP 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.”
Intel says its AI strategy is grounded in the belief that harnessing the power of AI to improve business outcomes requires a broad mix of technology – hardware and software – and full ecosystem support.
In 2019, the US chipmaker expects to generate over $3.5 billion in AI-driven revenue, up more than 20% year-over-year. Together, Intel and Habana can accelerate the delivery of best-in-class AI products for the data centre, addressing customers’ evolving needs.
Shenoy continues: “We know that customers are looking for ease of programmability with purpose-built AI solutions, as well as superior, scalable performance on a wide variety of workloads and neural network topologies.
“That’s why we’re thrilled to have an AI team of Habana’s calibre with a proven track record of execution joining Intel. Our combined IP and expertise will deliver unmatched computing performance and efficiency for AI workloads in the data centre.”
According to the statement, Habana will remain an independent business unit and will continue to be led by its current management team.
Habana will report to Intel’s 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, algorithms and research that will help Habana scale and accelerate.
Intel also revealed that Habana’s chairman, Avigdor Willenz, has agreed to serve as a senior adviser to the business unit as well as to Intel. Habana will continue to be based in Israel where Intel also has a significant presence and long history of investment. Prior to this transaction, Intel Capital was an investor in Habana.
“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,” adds 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.”
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