Intel acquires Israel-based Habana Labs for $2 billion

Intel (Nasdaq: INTC) paid around $2 billion to acquire Habana Labs, an AI processor startup based in Israel.

Why it matters: Intel continues buying big to succeed in the AI chip market, which it expects to be worth more than $25 billion by 2024, even if some past acquisitions haven't yet worked out as planned.

• ROI: Habana had raised $120 million over two rounds of VC funding, from Intel, Bessemer Venture Partners, Samsung, Walden International, and WRV Partners.

The bottom line: "The microprocessor giant is hell-bent on getting internet giants and enterprises to use its neural-network math coprocessors, rather than GPUs and specialist custom parts from Nvidia and others, and it's hoping this Habana upstart will help that dream come true." — Katyanna Quach, The Register