Why Intel is seeking Nervana: the chip giant needs help in AI

Earlier this year, Nervana Systems CEO Naveen Rao was asked what would happen if Intel began attacking the fast-growing market for chips designed specifically for running "deep learning" software. Now, Rao will be a key player in Intel's attempt to catch up in one of the most promising new silicon markets to emerge since the smartphone. Intel revealed Tuesday that it is buying Nervana and its deep-learning hardware and software for an undisclosed amount. The acquisition marks a departure for Intel and comes at a crucial moment. The company became the world's largest chip maker with a single-minded strategy to make its x86 microprocessors the standard for running a huge swath of applications, from solitaire to massive payroll systems.