Intel Corporation INTC announced Thursday a deal to bolster its expertise in artificial intelligence, an up-and-coming technology.
What Happened: Intel said it will acquire SigOpt, a San Francisco-based startup that provides a leading platform for the optimization of artificial intelligence software models at scale.
The chip giant said it plans to use SigOpt's software technologies across its AI hardware products to help accelerate, amplify and scale its AI software solution offerings to developers.
Intel said it expects the deal to close in the fourth quarter. Transaction terms of the deal weren't disclosed.
"SigOpt's software technologies combined with Intel hardware provide competitive advantages and differentiated value for data scientists and developers, and they complement Intel's existing AI software portfolio," Intel said in the release.
Related Link: Understanding Intel's Unusual Options Activity
Why It's Important: Intel has been panned of late for having ceded technological leadership in chip designing. Its focus on emerging technologies will likely help redeem some of its lost pride.
SigOpt has among its customers base Fortune 500 companies across industries, as well as leading research institutions, universities and consortiums.
Intel expects the AI silicon market to be greater than $25 billion by 2024.
At last check, Intel shares were edging down 0.38% to $44.08.
SigOpt CEO and co-founder Scott Clark (left) and CTO and co-founder Patrick Hayes will join the Machine Learning Performance team at Intel. (Credit: SigOpt)
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