Intel ruined an Israeli startup it bought for $2B–and lost the AI race
Intel has effectively dismantled Habana Labs, an Israeli AI chip startup it acquired for $2 billion, marking a significant failure in its attempt to compete with Nvidia. Despite initial optimism and a deal with Amazon for its Gaudi chips, Intel's internal issues and integration problems led to key personnel departing and the cancellation of next-generation products like Falcon Shores. This outcome represents a rare misstep for Habana's founder, Avigdor Willenz, who has a history of successful ventures in the semiconductor industry. AI
IMPACT Highlights the intense competition and challenges in the AI hardware market, potentially impacting the supply chain for AI model training.