Red Hat is acquiring AI optimization startup Neural Magic

Red Hat, the IBM-owned open source software company, is acquiring Neural Magic, a startup focused on optimizing AI models for faster performance on standard processors and GPUs. Founded in 2018 by MIT researchers Alex Matveev and Nir Shavit, Neural Magic's technology allows AI workloads to run at speeds comparable to specialized chips by utilizing off-the-shelf hardware. The financial details of the acquisition were not disclosed. Neural Magic has raised $50 million in venture capital from notable investors, including Andreessen Horowitz and Comcast Ventures. Red Hat's CEO, Matt Hicks, highlighted the significance of Neural Magic's open-source project, vLLM, which enhances model serving capabilities. This acquisition aligns with Red Hat's strategy to expand its AI offerings, particularly in hybrid cloud environments, enabling customers to optimize and deploy AI models more effectively. The announcement coincides with Red Hat's participation in KubeCon, where it also introduced new tools aimed at improving data center energy efficiency. The trend of major tech companies acquiring AI optimization firms is growing, as seen with Nvidia's acquisition of Run:ai earlier this year.

- Red Hat is acquiring Neural Magic to enhance its AI optimization capabilities.

- Neural Magic's technology allows AI models to run efficiently on standard hardware.

- The acquisition supports Red Hat's focus on hybrid cloud solutions for AI.

- Neural Magic has raised $50 million in venture capital prior to the acquisition.

- The deal reflects a broader trend of tech companies acquiring AI optimization startups.