Get the latest tech news
Intel ruined an Israeli startup it bought for $2B–and lost the AI race
Habana Labs was supposed to challenge Nvidia. Instead, Intel drove it into the ground.
In December 2020, Amazon announced with great fanfare that it would use Gaudi chips from the small Israeli startup Habana Labs to train its large language models (LLMs) in the cloud. Last week, along with reporting disappointing financial results, Intel announced that its next-generation Habana processor, Falcon Shores, had received negative feedback from customers and would therefore not be marketed commercially. Sources who spoke to Calcalist about Habana’s downfall unanimously agree that Intel mismanaged the acquisition by pursuing multiple competing AI strategies without fully committing to any.
Or read this on Hacker News
