Intel to buy startup Nervana System to add cloud service

Intel, which makes computer chips that run more than 90 per cent of the world’s servers, said it is buying start-up Nervana Systems to add software, a cloud service and future hardware in an attempt to better tune its products for artificial intelligence work. While Intel’s Xeon processors dominate in data centres, they are not built for the unique workloads of artificial intelligence calculations, according to Gartner Inc analyst Martin Reynolds. Adding Nervana’s products and expertise will help it gain a foothold in a small but growing market and fend off would-be rivals such as Nvidia, if it can rapidly turn its acquisition into products. “The market isn’t that big yet,” he said. “But it’s potentially a huge opportunity.” Fastest-growing unit Intel’s data-centre unit, its most profitable and fastest-growing business,…


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