Intel snaps up Nervana Systems 

New York: As part of its strategy to focus on artificial intelligence (AI) inside corporate data centers, Intel Corporation is acquiring Nervana Systems, a California-based deep learning start-up in AI space. However, the chip giant has not revealed the acquisition details, but according to a source in the know said the deal is valued at around $408 million. The Intel acquisition of the 48-person start-up has become a major news in the technology sector.

“We will apply Nervana’s software expertise to further optimise the Intel Math Kernel Library and its integration into industry standard frameworks. 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,” Diane Bryant, Executive Vice President of Data Center Group at Intel, said in a statement on Wednesday.

Diane Bryant, Executive Vice President of Data Center Group at Intel

We will apply Nervana’s software expertise to further optimise the Intel Math Kernel Library and its integration into industry standard frameworks. 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.

According to a report by Recode, Intel vice president Jason Waxman said that the shift to artificial intelligence could dwarf the move to cloud computing. he said: “Machine learning is needed as we move from a world in which people control a couple of devices that connect to the Internet to one in which billions of devices are connecting and talking to one another. There is far more data being given off by these machines than people can possibly sift through.”

The global chipmaker is in the process of bringing machine learning to Silicon Valley. This process led Intel to acquire Nervana. Intel is focusing on machine learning and AI rather than simply making software that can run on top of anyone’s cluster of graphics chips. Intel is in comfortable position as its chips dominate in data centers.

Naveen Rao, former Qualcomm researcher, is the founding member of Nervana. He raised $25 million via venture funding route and also holds a contract to work with In-Q-tel, the US intelligence community’s venture arm. Rao said that the deal didn’t reflect any hurdles in getting more capital to stay independent.

He further added that “raising money was not the problem. That was going to be relatively easy. But by selling to Intel, we have access to technology we’d never dream about.”

That’s in contrast to the mobile world, where the company is investing big in internet-of-things efforts after having essentially missed out on the smartphone revolution.

The sale of Nervana also represents the first big exit for Andy Rubin’s Playground Global, which was an investor. Other investors include Data Collective, DFJ, Lux Capital and Allen & Co.

Steve Jurvetson, who lead the early investment in Nervana, said he was drawn to the unique background of the startup founders. “This is a group that’s not been walking the usual path,” he said.

The investor is also incredibly bullish on deep learning, which he sees as transformative for the business world. “I think it’s the biggest advance since the scientific method itself,” he added.

Source: IANS