Intel Invested ~$1 Billion in AI Startups and Innovations
Over $1 billion poured into AI startups
Nvidia (NVDA) was recently recognized by the MIT Technology Review as the smartest company in 2017, resulting from its innovations tied to artificial intelligence (or AI). However, that doesn’t mean it is the only chipmaker leading in the AI space.
Intel (INTC) recently spoke out about its AI efforts and noted that it has invested more than $1.0 billion into startups focused on AI innovations. The tech giant added that it is committed to the contribution of AI to society, jobs, and daily life.
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Autonomous driving technology
Intel noted that it made the investments in AI startups through its venture arm, Intel Capital. The AI-focused startups backed by Intel include Lumiata, Data Robot, and Mighty AI.
In AI, Intel has backed innovations in areas such as autonomous driving, medical tech, and climate. Autonomous driving seems to be a particularly intriguing field for Intel. Earlier this year, the company closed the $15 billion acquisition of Israeli automotive tech firm MobileEye to bolster its play in the autonomous driving technology (QQQ) market.
Economic impact of AI
AI has enormous economic potential, which could transform the outlooks of companies like Intel. According to Grand View Research, AI could directly create $35.9 billion in revenues and pour another $59.0 billion into the economy by 2025. The chart above shows the revenue trend in Intel’s core Client Computing Group (or CCG).
With growth diminishing in Intel’s core client computing market—and with the company facing a competitive threat from Nvidia, Advanced Micro Devices (AMD), and Qualcomm (QCOM) in the data center market—AI could be a saving grace for the company.