Intel acquires artificial intelligence specialist Nervana Systems in $400m deal

Computer giant's goldrush for AI companies and talent hots up

Semiconductor giant Intel has bought artificial intelligence (AI) start-up Nervana Systems in a $400m deal as it looks to shift the epicentre of its business away from the moribund PC market.

Nervana is a 48-person company based in San Diego, California founded only in 2014. Led by co-founder Naveen Rao, a former Qualcomm researcher, it claims to offer a fully optimised software and hardware stack for 'deep learning'.

The firm's cloud-based service is intended to enable businesses to build and deploy applications that make use of deep learning. Nervana has developed a custom microprocessor especially for deep learning.

Intel is hoping to deploy the company's technology in its data centres business, using it to better optimise major computing resources.

Diane Bryant, executive vice president and general manager of Intel's Data Centre Group, announced the deal last night.

She said: "Their IP and expertise in accelerating deep learning algorithms will expand Intel's capabilities in the field of AI. 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 Intel Xeon and Xeon Phi processors."

Rao added: "The semiconductor integrated circuit is one of humanity's crowning achievements and Intel has the best semiconductor technology in the world.

"Nervana's AI expertise combined with Intel's capabilities and huge market reach will allow us to realise our vision and create something truly special."

Intel's acquisition of Nervana comes just days after Apple scooped up an AI start-up called Turi. The company handed over $200m for the Seattle-based firm, according to reports.

Turi claims that its AI services are already in use in a number of sectors, including fraud detection, customer churn and sentiment analysis. Apple will no doubt put its technology to work improving Suri.