Intel Buys Israeli AI Startup Habana Labs for $2 Billion
December 16, 2019 | ReutersEstimated reading time: 1 minute
Intel Corp has bought Israel-based artificial intelligence (AI) firm Habana Labs for about $2 billion, the chipmaker said on Monday, seeking to expand its AI portfolio to bolster its data-center business.
Intel expects the fast-growing AI chip market to exceed $25 billion by 2024, with its own AI-driven revenues this year seen rising 20% from 2018 to more than $3.5 billion.
Intel has increasingly been depending on sales to data centers as PC sales stagnate.
“Habana turbo-charges our AI offerings for the data center with a high-performance training processor family and a standards-based programing environment to address evolving AI workloads,” Navin Shenoy, general manager of Intel’s data platforms group, said in a statement.
Habana, an AI processor firm, was founded in 2016 and has offices in Tel Aviv, San Jose, Beijing and Gdansk, Poland. It has raised $120 million to date, including $75 million in a funding round led by Intel Capital last year.
The company launched its new Gaudi AI training processor in June, that it said will deliver much faster processing speeds to compete with similar offerings from rival Nvidia.
“Intel plans to take full advantage of its growing portfolio of AI technology,” Intel said.
Nvidia outbid Intel last March to buy Israeli chipmaker Mellanox for $6.9 billion, boosting its data-center chip business.
Habana will remain an independent business unit led by its current management team and report to Intel’s data platforms group.
The company will continue to be based in Israel and its Chairman Avigdor Willenz will serve as a senior adviser to Intel, the companies said.
Willenz sold chip designer Galileo Technologies to Marvell Technology Group for $2.7 billion in 2001, and Annapurna Labs to Amazon for an estimated $370 million in 2015.
With five facilities, Intel already has a significant presence in Israel and has become one of the country’s top exporters since launching operations there in 1974.
The California-based chip giant moved its automotive technologies headquarters to Jerusalem after buying Mobileye for $15 billion in 2017. It is investing $11 billion to expand its local chip factory and also launched a tech accelerator in Israel in June.
Suggested Items
Cogiscan Collaborates with Koh Young to Unveil How Factory Insights Software Transforms Data Into Action at IPC APEX EXPO
03/28/2024 | Koh YoungKoh Young, the industry leader in True3D measurement-based inspection solutions, is excited to announce Factory Insights, the latest offering from Cogiscan, will be demonstrated alongside KSMART in Koh Young booth 2112 during IPC APEX Expo.
ASMPT to Exhibit Smart Manufacturing at IPC APEX EXPO 2024
03/27/2024 | ASMPTWith its innovative, data-driven Intelligent Factory concept and a comprehensive hardware and software portfolio around SMT production, market and innovation leader ASMPT will be a major presence at the IPC APEX EXPO 2024, the industry’s main event in California.
Semtech Pioneers the Path to 6G with Advanced 5G Wireless Technologies
03/27/2024 | BUSINESS WIRESemtech Corporation, a leader in high-performance semiconductors, IoT systems and cloud connectivity services, unveiled its latest innovations poised to shape the future of 5G and pave the way for 6G.
IDC: Half of Asia’s Top Firms to Embrace AI-Driven Headless BI and Analytics by 2026
03/27/2024 | IDCA recent IDC FutureScape report, IDC FutureScape: Worldwide Data and Analytics 2024 Predictions — Asia/Pacific (Excluding Japan) Implications, highlights that by 2026, 50% of Asia/Pacific-based Top 2000 organizations (A2000) will adopt AI-driven headless BI and analytics with chat, Q&A, and proactive notification functionality, quadrupling the number of users with access to contextual information.
AT&S Well Prepared to Benefit from AI Boom
03/26/2024 | AT&SThe rapid progress in the development of artificial intelligence promises to revolutionize all areas of daily life in the coming years. In order to operate such AI systems, an enormous amount of computing power is required, which is provided by a vast network of data centres.