To keep up with the pace of artificial intelligence (AI) development, tech giants such as Intel are investing heavily in small AI start-ups and LABS to bring the best ideas and hottest talent in the field under their control, according to Taiwanese media.

According to a report by Taiwan's economic daily on December 31, 2019, Intel bought Habana lab, an Israeli AI chip startup, for $2 billion in December 2019, the largest AI enterprise deal in a year.

In recent years, tech giants like amazon and Microsoft have also used mergers and acquisitions to enhance their ability to apply complex algorithms to improve the performance of delivery robots and autonomous driving, the report said. According to project proposals, apple has bought 17 AI innovation companies since 2013.

According to ng, who founded several ai companies such as running.ai, ai is strategically important for many industries and can make a world of difference if used properly or not. One of Landing's shareholders is Intel's venture capital division.

Mr. Etzioni, the director of the Allen AI institute, also said that many companies pursue AI deals mostly because they want to recruit talent or acquire specific products. He also said that buying a company is more likely to match its team cohesion and business capabilities. In June, for example, apple bought drive.ai, a struggling self-driving start-up, for an undisclosed sum, a move widely seen as an attempt to recruit engineers.

Naveen shenoy, who manages Intel's data center and AI businesses, says Intel is committed to investing in AI so it can win in this market. He said the company bought Habana, which specialises in machine learning chips, because it was optimistic about the rapidly growing demand for AI computing. Intel estimates that the industry as a whole will sell $25 billion worth of AI computing chips over the next five years.