Why Intel's purchase of AI startup Habana Labs is a blow to Nvidia - Business Insider

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Why one long-time industry analyst argues Intel's $2 billion purchase of AI startup Habana Labs is a direct challenge to Nvidia

is a challenge to chipmaker Nvidia's dominance in offering the processors needed to power advanced machine-learning platforms, according to one long-time industry analyst.

That market has largely been controlled by Nvidia — which makes more high-end graphics processors that work well in supporting AI applications. But the purchase of Habana Labs positions Intel to challenge that dominance, argued Jack Gold, a 25-year industry analyst who founded J.Gold Associates. "Intel is betting big on AI's future. It's going to be a huge market in the next several years as the overall computing market is transformed by what AI can accomplish from low-end mobile devices all the way to high-end data centers in the cloud," he wrote in a recent research note.

, or the branch of AI focused on replicating how the human brain functions, allows machines to operate essentially like a human would. The problem, however, is Intel previously did not have processors powerful enough for the technology.

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