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Intel buys Israel-based AI chipmaker for $2B

Intel Corp. purchased Habana Labs Ltd., an Israel-based developer of programmable deep learning accelerators for data centers, in a $2 billion deal that Intel said will strengthen its artificial intelligence business.

Habana will continue to operate as an independent business unit based in Israel and led by its current management team. It will report to Intel's Data Platforms Group, which includes other data-center AI technologies.

Habana Chairman Avigdor Willenz will serve as a senior adviser to the Habana business unit as well as to Intel. Intel Capital was an investor in Habana before this transaction.

In 2019, Intel expects to generate more than $3.5 billion in AI-driven revenue, representing year over year growth of more than 20%.