Intel Corporation (NASDAQ:INTC) is acquiring semiconductor pioneers Movidius.
The startup excels in creating system on a chip (SoC) products, which refer to chips that contain all the technology necessary to run a computer or another device. The terms of the deal have not been disclosed, but the move will bolster Intel’s artificial intelligence unit, which follows the August acquisition of AI startup Nervana Systems.
One of the key reasons why the company is adding Movidius to its fold is to catch up with rivals in the semiconductors business. The startup has the technology to improve Intel’s cameras by boosting their “computer vision and perceptual computing” in its products.
The technology will be used to build products such as Project Alloy, which is a virtual-reality (VR) headset. The declining personal computer market has led Intel to turn its focus towards microprocessors, which will soon be capable of competing with market leaders in the production of smartphones, drones, smartwatches and more.
Additionally, Movidius will help Intel expand augmented and merged reality capabilities, and enhance its robotics and security segments. The move is a departure from the company’s x86 computer architecture instructions, which has been key to its business since the 1970s.
Movidius has been around since 2005 when it first launched in Ireland. Venture capital firms helped to fund the company, which garnered $85 million in order to get going.
Its SoCs and other technologies include algorithms for depth processing and navigation. Movidius has teamed up with Alphabet Inc.‘s (NASDAQ:GOOG,NASDAQ:GOOGL) Project Tango, which consists of technology that links smartphones with its surroundings through this depth perception tech.
The deal will be complete by the end of 2016.
INTC stock rose 1% Tuesday.
