- Intel announced Tuesday it is buying deep learning startup Nervana Systems.
- Though terms of the deal were not disclosed, Recode sources valued that deal at around $408 million.
- Nervana will continue to operate out of its San Diego headquarters.
Artificial Intelligence has the potential to enable companies to identify opportunities in data that could be otherwise missed. A recent report from Narrative Science and the National Business Research Institute found that more than half of enterprises plan to use AI by 2018.
Naveen Rao, CEO and co-founder of Nervana, said in an announcement that the combination of Nervana’s technology and expertise incorporated into Intel’s portfolio will "take deep learning/AI solutions to the next level."
Intel has worked to pivot its focus as the traditional chip-making market has struggled. Newer technologies like AI are vital to that effort. Intel processors power 97% of servers deployed to support machine learning workloads today, according to the company. Combined with Nervana, Intel is potentially positioned to become one of the leaders in providing AI solutions.
Diane Bryant, executive vice president and general manager of the Data Center Group at Intel, said in a company blog that Intel intends to lead the way in AI, and Nervana will help it get there.
Specifically, Bryant said Intel will apply Nervana’s software expertise to "further optimize the Intel Math Kernel Library and its integration into industry standard frameworks."