Intel Corporation has acquired the Habana Labs, for around $2 billion. The acquisition strengthens the chip marker AI portfolio and accelerates its efforts in the AI silicon market. Intel estimates the total addressable market (TAM) for AI silicon to be greater than $25 billion by 2024. The AI chip market in the data center to be greater than $10 Billion, notes Intel in the announcement. Moreover, the two companies can accelerate the delivery of AI products for the data center, addressing customer evolving needs.

In a clear signal of its ambitions in the AI chip market, Intel this morning announced that it has acquired Habana Labs, an Israel-based developer of programmable AI and machine learning accelerators for cloud datacenters. The deal is worth approximately $2 billion, and Intel says it will strengthen its AI strategy as Habana begins sampling its proprietary silicon to customers. Habana -- which raised $75 million in venture capital last November -- will remain an independent business unit and continue to be led by its current management team. It will report to Intel's data platforms group. Board chair Avigdor Willenz will serve as senior adviser to the business unit, as well as to Intel. "This acquisition advances our AI strategy, which is to provide customers with solutions to fit every performance need -- from the intelligent edge to the datacenter," said Navin Shenoy, executive vice president and general manager of the data platforms group at Intel.