How Intel Lost the AI Race
The Israeli Startup Bought for $2B Was Ruined
Intel’s $2 billion acquisition of Habana Labs in 2019 was supposed to be a bold move to challenge Nvidia’s dominance in the AI chip market. Instead, it turned into a cautionary tale of how even the mightiest tech giants can fumble the ball when it comes to acquisitions. What began as a promising partnership with the Israeli startup, known for its cutting-edge AI processors, ended in layoffs, missed opportunities, and a spectacular failure to dethrone Nvidia. Let’s dive into the juicy details of how Intel managed to drive Habana Labs into the ground.