Behind the market’s heated discussion, refracting Intel and Nvidia’s arrogance in the field of data center AI chips.
Editor’s note: This article is from WeChat public account “ 甲子 光年 ” (ID: jazzyear), author Xingbei, editor Match Q.
The general situation in the world, chaos will change, and change will have opportunities.
In the semiconductor industry in recent years, the previously solidified market structure has gradually loosened, cities have disappeared, competition is intertwined, and large amounts of investment and mergers and acquisitions have emerged. This is the “chaotic world pattern” brought about by the emergence of new technologies, new markets, and new business formats.
The latest drama of “The Troubled World” is that on Monday, Intel announced the acquisition of Israeli semiconductor company Habana Labs at a high price of $ 2 billion, and the company has only been established for 3 years. In the long-term chip circuit, Habana’s valuation growth rate and lightning exit are impressive.
Behind the heated market debate, Intel and Nvidia’s arrogance in the field of data center AI chips is refracted.
Jia Guangnian interviewed several practitioners and investors in the semiconductor industry for the first time, and will analyze from the following three aspects:
1. Why is Habana a good bid?
2. Intel gives the “impatient” and reason behind the negotiation price ceiling?
3. What are the new opportunities for giants and start-ups in the “Chaos” battle of AI chips?
01 Unexpected acquisition, slightly unexpected valuation
On the morning of December 16th (Monday), Intel, which has always been known for buying high prices, announced that it had officially acquired the Israeli data center AI chip maker Habana Labs, which has been established for only 3 years (US $ 2 billion) Called Habana).
Navin Shenoy, executive vice president and general manager of Intel ’s Data Platform Division, has an official statement after the acquisition, and he emphasized the three core values of Habana products to Intel:
· Outstanding high-performance training processor series
· Standards-based programming environment
· Excellent scalability
IWe understand that customers looking for easy-to-program, purpose-built artificial intelligence solutions also need to have excellent scalability across a variety of workloads and neural network topologies, and Habana ’s track record in these areas is obvious to all, so we I’m glad an artificial intelligence team like Habana joined Intel. Our integrated intellectual property and expertise will provide unparalleled computing performance and efficiency for data center AI workloads.
—— Intel China WeChat Official Account
These three together strengthen Intel’s capabilities in data center artificial intelligence products.
After the acquisition, Habana will operate as an independent business unit, with the main operating base still in Israel, retaining the existing management team and reporting to the Intel Data Platforms Group; Hagana Chairman Avigdor Willenz agreed to serve Business Unit and Intel Senior Advisor.
In fact, Intel’s shot at this semiconductor rookie is not surprising.
As early as November 2018, Intel Capital led Habana’s Series B financing, with a total funding of up to $ 75 million, which has locked this company early.
Earlier in August 2016, Intel also acquired Nervana Systems, which also makes AI chips for data centers, for $ 408 million. At that time, Nervana was only two years old.
The final finalized valuation of US $ 2 billion falls on the expected upper line.
According to Israeli media Globes and Calcalist earlier this month, Intel had been negotiating with Habana for weeks at a price between $ 1 billion and $ 2 billion.
In just ten days, Intel officials announced the successful acquisition, and the final purchase price was settled at US $ 2 billion.
Why is Intel eager to get this acquisition and is so eager to get Habana into it?
The reason is interesting.
02 Avigdor and Intel’s “two birds with one stone”
Grass snake line, thousands of miles. In February of this year, Nvidia acquired Israeli network communications chip company Mellanox for $ 6.8 billion, setting a record for Nvidia’s highest acquisition ever.
This acquisition is actually subtly related to Intel’s current acquisition of Habana.
One of Mellanox’s main businesses is to make Smart NIC, that is, smart network card. Habana’s chairman Avigdor Willenz (hereinafter referred to as Avigdor) participated in 2011