Intel Buys AI Startup Nervana to Bolster Data Center Unit

Intel Corp., which makes chips that run more than 90 percent of the world’s servers, said it’s buying startup Nervana Systems to add software, a cloud service and future hardware in an attempt to better tune its products for artificial intelligence work.

While Intel’s Xeon processors dominate in data centers, they’re not built for the unique workloads of artificial intelligence calculations, according to Gartner Inc. analyst Martin Reynolds. Adding Nervana’s products and expertise will help it gain a foothold in a small but growing market and fend off would-be rivals such as Nvidia Inc., if it can rapidly turn its acquisition into products.