Intel Has Bought A Machine Startup For $350 Million

Intel CEO Brian Krzanich
Intel has officially bought Nervana Systems, a two-year-old machine startup in a bid to expand and dominate its data center business.

Artificial intelligence is definitely the next big thing, which is innovating like a speed of light among the Corporate data centers.

Recode reports the deal is valued within $350 million, but Intel declines to share the financial details of the deal.

Nervana System boasts of quality proved technology leadership, with Naveen Rao – former Qualcomm researcher recording great success in $25 million raised in venture funding.

Rao said that the deal didn’t reflect any hurdles in getting more capital to stay independent.

“Raising money was not the problem,” he said. “That was going to be relatively easy.” But by selling to Intel, he said, “we have access to technology we'd never dream about.”

In data centers, Intel is operating from a position of strength as its chips dominate while the emphasis is geared towards growing its data center and Internet of Things units.

In today’s data centers, Intel provides more than 90 percent of the chips, plus with the integration of Nervana’s technology will further boost its service rendering.

Diane Bryant, the head of Intel's data center business, wrote in a blog post. "Their IP and expertise in accelerating deep learning algorithms will expand Intel's capabilities in the field of AI." 

That’s a clear valid point, considering Intel’s slow rate the slow rate of Intel’s data business, with challenges in recent quarters preventing a robust growth, according to Wall Street belief.

Meanwhile, the success of the acquisition deal is definitely a healthy growth for the Intel platform. It’s worthy to note; Intel’s approach in bringing Venkata “Murthy” Renduchintala on board as its No. 2 man as played a key role in the deal acquisition. Renduchintala envisages the possibility of machine learning and artificial intelligence recently in a blog post with a further explanation of his move to Intel.

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>> Image: [BusinessInsider]

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