Industry News

Intel Acquired Nervana Systems, a California-based Artificial Intelligence Start-Up Company

San Francisco: Intel Corporation, a California-based company chip manufacturing company has signed definitive agreement to acquire Nervana Systems, a California-based Artificial Intelligence (AI) start-up company with an aim to expand its portfolio in AI market. Nervana systems, founded in 2014, was engaged in providing deep learning algorithms, machine learning, neuroscience, predictive learning, etc. and thus offering fully-optimised software and hardware stack for deep learning.

The acquisition would enable Intel to leverage Nervana’s expertise in deep learning algorithms for expansion of its AI product portfolio. It would also enable Intel to optimise its Intel Math Kernel Library by integration of Nervana’s software expertise into industry standard frameworks.

As per market sources, Intel has paid over USD400 million for the deal. Nervana plans to come up with the Nervana Engine, an AI hardware accelerator, is an Application Specific Integrated circuit (ASIC) in the year 2017. The acquisition would enable Intel to expand its AI portfolio with Nervana’s Engine, which would not only augment the deep learning performance but also enhance the Total Cost of Ownership (TCO) of Intel Xeon and Intel Xeon Phi Processors.

TechSci Research depicts that the growing focus of multinational companies such as Intel Corporation entering into the AI domain, by the means of machine learning, etc. with an increase in adoption for usage of image and speech recognition in consumer electronic devices such as smartphones, and tablets. Moreover, growing trend of autonomous vehicle such as unmanned aerial vehicles, and autonomous cars are expected to emerge as the major end user segments for artificial intelligence.  

According to the recent report published by TechSci Research, “United States Artificial Intelligence Market, By Application (Speech Recognition, Image Recognition, etc.), By Region, and By End User (Consumer Electronics, Security & Access Control, etc.) Competition Forecast & Opportunities, 2011-2021”, the market for artificial intelligence in the US is projected to grow at a CAGR of around 75% during 2016 - 2021. Growing trend of integration of video surveillance with artificial intelligence for video analysis, coupled with rising government spending on cyber security solutions integrated with real time analytics and artificial intelligence is expected to boost artificial intelligence market in the United States over the next five years. In 2015, the US artificial intelligence market was highly fragmented, with presence of a huge number of start-ups in the country. However, the market is expected to undergo consolidation in the coming years, with tech giants such as Apple, Google, Microsoft, Intel, Amazon, IBM, etc., thrusting on inorganic expansion in the country’s artificial intelligence market. Research and developmental activities on integration of 3D printing, artificial intelligence and neurotechnology are expected to augment artificial intelligence adoption in the US healthcare market. Furthermore, growing application of speech recognition, image recognition and natural language processing in consumer electronics is gaining momentum in the country, with the trend expected to continue through 2021.

Relevant News