intel

Intel to “Ignite” Startups in Austin, Texas, and Munich

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Above: Intel CEO Bob Swan. “It has far surpassed our expectations”

Intel announced the launch of two additional Intel Ignite sites in Austin, Texas, and Munich, Germany, following its success in Tel Aviv, Israel. Intel Ignite is a startup growth program launched in 2019. It is a 12-week program for 10 early-stage startups that receive hands-on mentorship from Intel and world-leading experts. Participating companies will gain access to technology and business leaders.

“We launched Ignite in 2019 both to support early-stage companies on their journey to success and to provide Intel employees with an opportunity to advance our purpose,” said Intel CEO Bob Swan. In its first year, the Ignite program’s achievements have far surpassed our expectations and because of its strategic impact, we are expanding its reach.”

Following Austin and Munich, Intel plans to establish the program in multiple cities throughout Europe, North America and Asia. Intel Ignite team chose Austin and Munich because both cities are home to Intel sites with top-tier startup ecosystems. The Ignite program in Munich and Austin will start in the first half of 2021. All three programs will have a physical base at the center of their local startup ecosystem.

Criteria for interested companies include a minimum of $1 million in funding (seed, series A), an experienced founding team, significant IP and a large market opportunity. Intel Ignite General Manager Tzahi (Zack) Weisfeld: “The startups we look for are fearless, pave new paths and are not afraid of taking bold steps. Intel employees engaging with the startups in Ignite are challenged to work more nimbly and creatively, and they gain perspective on how other companies and entrepreneurs operate, producing fast results and significant business outcomes.”

For more information: www.intel.com/ignite.

Intel may Outsource 7-nm Production

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Above: Bob Swan, Intel CEO. “We have invested in contingency plans “

Intel took the market by surprise when it revealed last week a plan to intensify outsource production and to move some of its future 7-nanometer devices production to third parties. Immediately following the announcement, Intel’s shares in NASDAQ lost 16%. In fact, Intel published a very good Q2 2020 results: Revenues of $19.7 billion, compared to $16.6 billion last year. It also expects annual revenues of $75 billion in 2020, compared to $72 billion in 2019.

But Intel’s production difficulties overshadowed every thing else. Intel’s, CEO Bob Swan, published a prepared remarks about the issue: “We are seeing an approximate six-month shift in our 7nm-based CPU product timing relative to prior expectations. Our 7nm process is now trending approximately twelve months behind our internal target. We have identified a defect mode in our 7nm process that resulted in yield degradation.”

“Contingency Plan” means Outsourcing Production

“We’ve root-caused the issue and believe there are no fundamental roadblocks, but we have also invested in contingency plans to hedge against further schedule uncertainty.” Trey Campbell, Director of Investor Relations, gave a context during the earning call: “Our priorities in the ideal world is leadership products on our process technology. But the focus will be leadership products. So to the extent that we need to view somebody else’s process technology, and we call those contingency plans, we will be prepared to do that.”

In an answer to an analyst in the call, Swan explained that if the company decide to continue to do all its production inside, it will invest “a little more (in) 10-nanometer and less (in) 7-nanometer. In the event we decide that we’re going to leverage third-party foundries more effectively, we would have a little more 10 and a lot less seven. In the event we’re not there and there’s a better alternative, be prepared to take advantage of it.”

The conclusion is shocking: Intel does not lead the process race anymore, and it is also does not believe in its ability to provide full scale 7 nm production services for its own road map. In this case it has no other option but to outsource TSMC and Samsung, the global leaders in 7 nm process.

Intel Acquires AI Chipmaker Habana Labs for $2 Billion

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Photo above: Habana Labs chairman Avigdor Willenz

Intel Corporation announced that it has acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for approximately $2 billion. Habana will continue to be based in Israel where Intel also has a significant presence and long history of investment. Prior to this transaction, Intel Capital was an investor in Habana. Habana chairman Avigdor Willenz will serve as a senior adviser to Intel.

“Habana turbo-charges our AI offerings for the data center,” said Navin Shenoy, general manager of the Data Platforms Group at Intel. “This acquisition advances our AI strategy, which is to provide solutions to fit every performance need – from the intelligent edge to the data center. Our combined IP and expertise will deliver unmatched computing performance and efficiency for AI workloads in the data center.”

Intel expects that the fast-growing AI silicon market be greater than $25 billion by 2024, and within that, AI silicon in the data center is expected to be greater than $10 billion. In 2019, Intel expects to generate over $3.5 billion in AI-driven revenue, up more than 20 percent year-over-year.

Habana's Gaudi AI Training Processor
Habana’s Gaudi AI Training Processor

Based in Caesarea, Israel, Habana labs was established in 2016 with Willenz as its first investor, and has developed dedicated chips for Deep Learning Training and Inference. Its Goya AI Inference Processor, which is commercially available, has demonstrated excellent inference performance including throughput and real-time latency in a highly competitive power envelope.

The Gaudi AI Training Processor is currently sampling with select hyperscale customers. Large-node training systems based on Gaudi are expected to deliver up to a 4x increase in throughput versus systems built with the equivalent number of GPUs. It is produced in TSMC’s 16 manometer process.

The acquisition gives Habana access to Intel AI capabilities, including deep expertise in AI software, algorithms and research that will help Habana scale and accelerate. In November 2018, Intel Capital led a $75 million investment round in Habana Labs. “We have been fortunate to get to know and collaborate with Intel given its investment in Habana, and we’re thrilled to be officially joining the team,” said David Dahan, CEO of Habana.

Intel and Microsoft Promote Security Standard for AI

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Last week, Intel and Microsoft brought together nearly 100 security and Artificial Intelligence (AI) experts to discuss new standards for Homomorphic Encryption (HE), which is emerging as a leading method to protect privacy in machine learning and cloud computing. The HE standards workshop took place on Intel’s Santa Clara, California campus. Following the first meeting in October, 2018, Intel and Microsoft initiated the founding of the HomomorphicEncryption.org group.

As more data is collected and used to power AI systems, concerns about privacy are on the rise. Casimir Wierzynski from the office of the CTO of AI Products Group at Intel, said that Intel is collaborating with Microsoft Research and Duality Technologies on standardizing HE, “to unlock the power of AI while still protecting data privacy.”

Fully homomorphic encryption, or simply homomorphic encryption, refers to a class of encryption methods envisioned by Rivest, Adleman, and Dertouzos already in 1978, and first constructed by Craig Gentry in 2009. Homomorphic encryption differs from typical encryption methods in that it allows computation to be performed directly on encrypted data without requiring access to a secret key. The result of such a computation remains in encrypted form, and can at a later point be revealed by the owner of the secret key.

It allows AI computation on encrypted data, thus enabling data scientists and researchers to gain valuable insights without decrypting or exposing the underlying data or models. This is particularly useful in instances where data may be sensitive – such as with medical or financial data.  Homomorphic encryption also enables training models directly on encrypted data, without exposing its content. Such encryption would enable researchers to operate on data in a secure and private way, while still delivering insightful results.

Apple to Acquire Majority of Intel’s Smartphone Modem Business

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Intel and Apple have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.

Intel will retain the option to develop modems for non-smartphone applications, such as PCs, internet of things devices and autonomous vehicles. “This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” said Intel CEO Bob Swan. “We will put our full effort into 5G where it most closely aligns with the needs of our global customer base.”

In April, 2019 Intel announced intention to exit the 5G smartphone modem business. “We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan.

Following the Apple-Intel announcement, CEVA’s shares in NASDAQ rose by 14%, to $28.99. CEVA from Israel provides the IP for the DSPs in Intel’s cellular modems. This is an important market for CEVA. It was well clear when its stock price had fell 13.6% in April, after Intel’s CEO revealed the exit plan from the smartphone modems business.

CEVA expects revenues from Apple starting Q3

Posted on by Techtime

Photo above: Intel XMM 7360 LTE Advanced modem

By Yohai Schwiger, Techtime

CEVA from Herzliya, Israel, is expected to report meaningful incomes from future iPhones following Apple decision to switch suppliers and give orders to Intel instead of Qualcomm.  A recent report from COWEN, indicates that with Qualcomm excluded entirely from the 2018 iPhone in lieu of CEVA-based Intel modems, CEVA is poised to increase both its unit share and royalies coming from  Apple.

COWEN: “We believe it should drive a powerful mix shift beginning in late 3Q18 when the phone begins shipping. Management indicated that Intel will be using a new DSP core for the iPhone modems manufactured at Intel’s foundry, which we estimate could bring 30-40% initial ASP bump for CEVA – in addition to the 50% unit share increase. By our math, this could present a $10M+ incremental revenue opportunity over the next four quarters for CEVA.

CEVA is a leading licensor of signal processing platforms (DSP) and a primary player in artificial intelligence (AI) processors. The analysts Matthew Ramsay, Joshua Buchalter and Ethan Potasnick believe that 4.9G/5G basestation chip royalties represent the largest near-term incremental revenue opportunity for CEVA.

“We continue to see a $20M+ incremental evenue opportunity from just Nokia and ZTE by 2020. In fact, CEVA recently announced an agreement with a 3rd 5G basestation customer and remains in discussion with a fourth (likely Samsung and Ericsson since Huawei does its own DSPs).”