Intel has joined the M&A wave that has taken over the tech space in the last few weeks. Yesterday, the company came under the limelight as it announced the acquisition of a deep leaning startup, Nervana Systems.
How the startup caught Intel’s attention is simple. In a time and age when most companies are focused on developing software that can run on anyone’s graphic chips, Nervana’s approach to bring machine learning into silicon is unique, with endless future prospects.
The terms of the acquisition deal haven’t been disclosed yet, but Recode reports that Intel has paid more than $350 to acquire Nervana Systems. The announcement comes only months after another tech giant, Saleforce, acquired deep learning startup – MetaMind.
The San Dieogo-based 48-person startup was founded in 2014, and is led by former Qualcomm researcher, Naveen Rao. Mr. Rao has not only raised $25 million through venture funding, he has also secured a contract to work with the US intelligence community’s venture arm, In-Q-tel. The startup closed a funding round last year, worth $20.5 million; investors include Draper Fisher Jurvetson, CME Ventures, AME Cloud Ventures, Allen & Co., Data Collective, Lux Capital, and Global Playground.
Intel executive vice president and general manager of the Data Center Group, Diane Bryant said in a blog post: “Nervana’s Engine and silicon expertise will advance Intel’s AI portfolio and enhance the deep learning performance and TCO of our Intel Xeon and Intel Xeon Phi processors.” Discussing the future prospects of the acquisition, Ms. Bryant specified that Nervana’s expertise would “advance Intel’s AI portfolio and enhance the deep learning performance and TCO of our Intel Xeon and Intel Xeon Phi processors.”
Many leading companies in the tech space such as Facebook, Apple, Google, and Microsoft have also ventured into deep-learning technology through acquisitions. We believe Intel’s latest acquisition is a mutually beneficial road where the chipmaker’s prestige and scale will put Nervana on the fast track to making its ideas available for the masses.