Semiconductor technology provider Intel agreed yesterday to acquire US-based deep learning software developer Nervana Systems for a price reported by Recode to be $408m, giving an exit to futures firm CME Group.
Nervana has built a cloud-based platform that enables businesses to incorporate enterprise-grade deep learning technology into their processes.
Intel will use Nervana’s expertise and intellectual property to expand its artificial intelligence capabilities, particularly with regard to the deep learning performance and efficiency of its Xeon and Xeon Phi processors, but the company will continue to operate as an independent subsidiary.
Nervana had raised almost $25m since it was founded in 2014. CME’s corporate venturing unit, CME Ventures, contributed to a $20.5m round in June 2015 that also featured Data Collective, Allen & Company, AME Cloud Ventures, Playground Global, DFJ, Fuel Capital, Lux Capital and Omidyar Network.
Rumi Morales, head of CME Ventures, said it invested at a $60m pre-money valuation last year.
Naveen Rao, co-founder and CEO of Nervana, said in a blog post: “With this deal, we can now shatter the old paradigm and move into a new regime of computing. We will look back in 10 years and see this time as the inflection point of when compute architectures became neural.
“The semiconductor integrated circuit is one of humanity’s crowning achievements and Intel has the best semiconductor technology in the world. Nervana’s AI expertise combined with Intel’s capabilities and huge market reach will allow us to realise our vision and create something truly special.”
Allen & Company acted as financial advisor to Nervana for the deal.