Intel Acquires cnvrg.io - Machine Learning Automation

Intel is actively expanding its machine learning and artificial intelligence capabilities through a series of strategic acquisitions. Recently, the company has acquired Cnvrg.io, an Israel-based firm specializing in a platform designed for data scientists. This platform facilitates the creation and execution of machine learning models, enabling users to train, monitor, and compare models, as well as generate recommendations and perform other advanced analyses.

Intel officially confirmed the acquisition, stating that Cnvrg.io will operate as a separate entity within the Intel organization and will continue to support its current and future clientele. Existing customers of Cnvrg.io include companies such as Lightricks, ST Unitas, and Playtika.

The financial specifics of the transaction have not been disclosed by Intel, nor have details regarding which members of the Cnvrg.io team will be joining Intel. Cnvrg.io was co-founded by Yochay Ettun (CEO) and Leah Forkosh Kolben, and previously secured $8 million in funding from investors including Hanaco Venture Capital and Jerusalem Venture Partners. PitchBook estimates the company’s valuation at approximately $17 million during its latest funding round.

This acquisition follows Intel’s purchase of SigOpt just one week prior, another company focused on machine learning modeling and optimization platforms. Both acquisitions demonstrate Intel’s commitment to strengthening its position in the AI sector.

While SigOpt is located in the Bay Area, Cnvrg.io’s presence in Israel complements Intel’s existing substantial investment in the country, particularly in artificial intelligence research and development. This investment is centered around its Mobileye autonomous vehicle division, acquired in 2017 for over $15 billion, and its 2019 acquisition of AI chipmaker Habana for $2 billion.

Cnvrg.io’s platform is compatible with on-premise, cloud, and hybrid cloud environments, offering both paid and free service tiers – the free tier, known as Core, was launched last year. The platform positions itself as a competitor to established players like Databricks, Sagemaker, and Dataiku, as well as smaller companies such as H2O.ai, which are built on open-source frameworks. Cnvrg.io aims to provide data scientists with a streamlined, user-friendly environment, allowing them to focus on algorithm development and performance evaluation rather than platform management.

Although Intel has not provided extensive details about the acquisition, the rationale appears similar to that of the SigOpt purchase. Intel is strategically shifting its focus towards advanced chip technologies to enhance its competitiveness against companies like Nvidia and GraphCore. Consequently, investing in and providing AI tools for customers, particularly those that optimize computational workloads on Intel chips, is a logical step.

It is worth noting that a previous article highlighted the availability of Nvidia-optimized containers for users of Cnvrg.io’s Core platform running on a Kubernetes cluster. It remains to be seen whether this compatibility will continue, or if containers will be optimized for Intel architecture instead, or if both options will be supported. Other partners of Cnvrg.io include Red Hat and NetApp.

Intel’s emphasis on next-generation computing is intended to counteract declines in its traditional businesses. The company recently reported a 3% decrease in revenue for the last quarter, primarily due to a downturn in its data center business. Intel projects that the AI silicon market will exceed $25 billion by 2024, with AI silicon within the data center segment reaching over $10 billion during the same period.

In 2019, Intel generated approximately $3.8 billion in revenue from AI-related products and services, and anticipates that tools like SigOpt’s will contribute to further growth in this area, aligning with the increasing demand for AI applications across various industries.