Tech giant Intel recently acquired deep learning startup from Nervana Systems for more than $400 million. Many analysts agree that Intel's latest acquisition simply highlights how important artificial intelligence is in the current tech industry.
Intel did not publicly disclose the exact amount it paid to acquire Nervana Systems. According to Recode, a source with internal knowledge about the deal said that the deal is valued at around $408 million.
What is even more interesting is the fact that Nervana Systems is a small startup firm with only 48 employees. Nervana Systems chief executive officer and co-founder Naveen Rao said that the company will continue its development efforts toward deep learning framework, hardware, and platform. Rao added all of its San Diego-based team will be integrated into Intel's Data Center Group once the deal is finalized.
In a blog post, Intel general manager of the Data Center Group Diane Bryant said, "We will apply Nervana's software expertise to further optimize the Intel Math Kernel Library and its integration into industry and standard frameworks."
Bryant added that the technology developed by Nervana Systems will enhance the deep learning performance of Intel's Xeon and Xeon Phi processors. The Intel Xeon and Xeon Phi series of chips are mainly used for powering supercomputers and enterprise servers and workstations.
Many analysts agree that Intel's acquisition of Nervana Systems will prove to be an optimistic deal for the chipmaker as more and more tech companies are gearing towards deep learning and artificial intelligence. Moreover, Intel's position as the dominant chip provider for data centers will be further improved by this latest deal.
Nervana Systems was founded in 2014 and had raised around $25 million in funding. Among the company's notable investors are Data Collective, DFJ, Lux Capital, Fuel Capital, and Allen & Co. Nervana made waves in the artificial intelligence community with the company's unique technology of hardware-centric systems to provide AI solutions.