Intel's Habana Labs AI Chip Dream Crumbles: Another Acquisition Fail
2025-02-09
Intel's 2020 acquisition of Israeli AI chip startup Habana Labs for $2 billion, whose Gaudi chips were used by Amazon to train large language models, has ended in failure. The next-generation Habana processor, Falcon Shores, was canceled due to negative customer feedback, effectively marking the end of Habana Labs. This highlights Intel's struggles with acquisitions and its inconsistent AI strategy. While founder Avigdor Willenz received a substantial payout, the failure represents a significant misstep and a missed opportunity for both Intel and Israel.
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acquisition failure