Intel in Negotiations to Buy Habana Labs, in Possible $2B Sale

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According to published reports, American technology titan Intel Corporation is engaging in advanced stage talks to purchase Israeli startup Habana Labs. Calcalist reported that Intel might be planning to dole out anywhere between $1 billion to $2 billion for the Tel Aviv based startup.

Edited by: TJVNews.com

According to published reports, American technology titan Intel Corporation is engaging in advanced stage talks to purchase Israeli startup Habana Labs. Calcalist reported that Intel might be planning to dole out anywhere between $1 billion to $2 billion for the Tel Aviv based startup.

The JPost reported in August 2017 that Intel purchased the Jerusalem-based vision technology company Mobileye for a record $15.3b., the largest sale or “exit” of an Israeli company to date.

Intel Israel commenced operations in 1974 and is a development and manufacturing center of Intel Corporation. As a leading technology company in Israel and in the world, Intel develops and manufactures integrated and connected digital technology and computing platforms. Although Intel is known primarily for development of semiconductors, they engage in other aspects as well. In recent years, they have evolved from a company that served primarily the personal computing industry to becoming a company that drives the largest data centers in the world, connecting millions of mobile installations and Internet of Things devices, as well as providing information systems protection for organizations and governments.

They employ nearly 13,000 workers in the country, exporting products worth $3.9b. in 2018 and procuring local materials and services worth $1.7b., primarily from peripheral areas, according to the JPost report.

In January, Intel announced plans to invest approximately $10.9b. in the company’s Israel-based operations to construct a vast production facility in Kiryat Gat. The 370,000 sq.m. expansion is expected to add 1,000 new employees to Intel’s existing workforce, as was reported by the JPost.

If Intel and Habana end up closing the deal and it goes through, this would be Intel’s second largest acquisition in Israel, according to the Calcalist web site.

Founded by David Dahan and Ran Halutz in 2016, semiconductor manufacturer Habana Labs is the developer of powerful AI processors, optimized for training deep neural networks and artificial intelligence systems, and for deployment in production environments, as was reported by the JPost. Last year, Intel Capital which is the investment arm of the US firm invested as part of a $75 million series B funding for the startup. Until now, Habana has raised approximately $120 million, according to Start-Up Nation Central.

According to the Times of Israel, the startup’s first processor, Goya, is already being sold to customers worldwide, and the firm in June this year introduced its Gaudi AI training processor solution.

The company designs the chips and outsources their manufacturing. It has offices in Tel Aviv and San Jose, California; Beijing, China; and Gdansk, Poland ; and employs 150 people worldwide, according to company data.

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