Home / Component / CPU / Intel reportedly dropping Nervana in favour of Habana Labs for AI chips

Intel reportedly dropping Nervana in favour of Habana Labs for AI chips

Intel has been looking to pin its flag in the AI market for years now, with efforts to create AI chips kicking off with the purchase of Nervana in 2016 and extending to a huge $2 billion acquisition of Israeli firm, Habana Labs. While Intel only just announced new Nervana Neural Network processors a few months ago, it looks like the company's time is coming to an end. 

As reported by Forbes this week, while Intel planned to release both inference and training AI processors from Nervana in 2019, development is coming to a stop. The NNP-I inference chip will still be supported for previously committed customers but the NNP-T AI training chip is cancelled.

Image credit: Habana Labs

Apparently, Nervana's chips just weren't performing well enough to keep up with the demands of Intel's customers. In particular, these chips weren't good enough to compete with Nvidia, but Intel's acquisition of Habana Labs could turn the tides.

Habana Labs is now expected to be the flagship for Intel's AI accelerating processor plans. In particular, the Habana Gaudi product line is expected to take over from where Nervana has left off. 

KitGuru Says: We were talking about Nervana's new chips just a short while ago, so this move does seem sudden, although the writing was seemingly on the wall once Intel decided to acquire Habana in December. 

Become a Patron!

Check Also

The Game Awards 2025 breaks records again with 171 million live views

This year's Game Awards has once again proven its dominance in the gaming calendar, setting a new viewership record for its 2025 broadcast. According to data reported by the organization, The Game Awards secured an estimated 171 million global livestreams, marking an 11% increase over the 154 million figure recorded in 2024.