In a nod to the future of cloud computing, Intel today agreed to buy Nervana, a startup that makes hardware and software for machine learning and artificial intelligence.
Nervana is relatively rare for a computing startup, in that it focuses on both the hardware and software required for deep learning—the framework of artificial intelligence. Founded in 2014, the San Diego company's products include Nervana Cloud, a complete system for customers who want to train their own deep learning models.
There are, of course, competitors offering similar products, including established chipmakers like Qualcomm and newcomers like Movidius. But Nervana says its distinguishing factor is that it has optimized the silicon in its chips for AI tasks, resulting in training speeds that are ten times faster than conventional GPU-based systems and frameworks.
That expertise will come in handy for Intel, which will face fierce competition from advanced GPU-based systems—like those offered by Nvidia—as it seeks to stake out its corner of the AI data center market.
Intel's products of the future, according to CEO John Krzanich, will revolve around data centers and the cloud. Since artificial intelligence will take up a lot of the bandwidth of those two products, it's only natural that Intel would invest in AI.
Intel has a lot riding on machine learning and the data centers and cloud computing that make its algorithms possible. The Nervana acquisition is one more sign that the era of Intel's coffers reliably filling up as a result of people upgrading their desktops and laptops at regular intervals is over.