Intel purchased the Israeli company Habana Labs for $2 billion in one of the biggest deals in startup nation this year.

By TPS

Intel Corporation acquired the Israeli startup Habana Labs for $ 2 billion, the tech giant announced Monday, in one of the largest hi-tech exits in Israel in 2019.

Established in 2016, Habana Labs specializes in the development of Artificial Intelligence (AI) chips.

Habana will remain an independent business unit and will continue to be led by its current management team.

“The combination strengthens Intel’s artificial intelligence (AI) portfolio and accelerates its efforts in the nascent, fast-growing AI silicon market,” Intel stated.

Yuval Rotem, Director General of Israel’s Ministry of Foreign Affairs said that the acquisition was “another vote of confidence in the Israeli tech industry, which continues to create innovative products and solutions used world-round!”

This is Intel’s second-largest acquisition in Israel after it purchased Mobileye a little less than three years ago for $15 billion.