IA: Intel offers Israeli startup Habana Labs for $ 2 billion

by bold-lichterman

Intel ends the year with a big blow to the artificial intelligence market. Determined not to be overwhelmed by the competition in this sector, the American giant has just poured out nearly $ 2 billion to get its hands on Habana Labs, an Israeli manufacturer of chips for artificial intelligence.

The interest of the Santa Clara group in this company is not new since it had led a funding round of $ 75 million in it in November 2018 via its investment vehicle Intel Capital. This operation therefore resulted in an acquisition a year later.

$ 3.5 billion in AI revenue in 2019

Founded in 2016 by David Dahan and Ran Halutz, the Israeli start-up last year launched the Goya chip, which claims three times better performance with lower latency compared to what Nvidia, a major player in the sector, offers. processors dedicated to artificial intelligence. But it is above all Gaudi, the new chip unveiled by Habana Labs last June, which caught the eye of Intel.

The latter indeed claims record performance with a technology that could make it possible to process very large models of artificial intelligence. The Israeli start-up ensures that its Gaudi chip is capable of producing an input / output rate four times greater than systems designed on GPUs.

The acquisition of the Habana Labs company should allow Intel to continue to place its pawns in a market which should weigh more than $ 25 billion by 2024. The American group plans to generate $ 3.5 billion in related revenues artificial intelligence for 2019, an increase of 20% compared to the previous year. A share which should rise further under the impetus of the chips developed by the young Israeli shoot.