Intel (NASDAQ:INTC) is leading AI news on Monday after announcing its acquisition of Israeli startup Habana Labs.
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The deal has Intel paying $2 billion to make Habana Labs part of its company. What it doesn’t do is replace the startup’s current management team. However, they will now report to its Data Platforms Group.
Avigdor Willenz, Chairman of Habana Labs, will be serving as a senior adviser to the group, as well as to Intel. The company will continue to operate out of Israel. INTC notes that it already has many operations in the country.
Intel says that the goal of this acquisition is to expand its AI efforts. This includes bringing in a diverse selection of groups to better understand the field. That covers both hardware and software for a better grasp of AI.
Navin Shenoy, Executive Vice President and General Manager of Intel’s Data Platforms Group, says this about the AI news.
“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 center. More specifically, Habana turbo-charges our AI offerings for the data center with a high-performance training processor family and a standards-based programming environment to address evolving AI workloads.”
INTC stock was down slightly as of Monday afternoon. However, the stock is currently up 22.75% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
