Intel’s Habana Labs shut down, but its founders are moving back in

Intel is shuttering Habana Labs, the Israeli chip design unit it acquired for $2 billion just five years ago, yet the operation's founders are preparing to resurrect the business independently—a striking reversal that exposes deep fractures in Intel's sprawling acquisition strategy. The move underscores how even well-funded ventures struggle to survive within Intel's bureaucratic structure, while simultaneously validating the original founders' belief in their technology's viability outside the chipmaker's control. What Intel deemed expendable could soon re-emerge as a leaner, more aggressive competitor in the lucrative market for AI accelerators.

CTech·Oct 20