US-based Unconventional AI has announced its acquisition of Israeli AI chip startup NeuReality in a cash-and-stock transaction. Reuters reported on October 26 that the financial terms were not disclosed. The deal is intended to accelerate Unconventional AI's product development.
Unconventional AI was valued at $4.5 billion and raised $475 million in December, according to Reuters. The company was founded by Naveen Rao, whose earlier businesses Nervana and MosaicML were acquired by Intel and Databricks. NeuReality was founded in 2019 by Moshe Tanach, Tzvika Shmueli and Yossi Kasus.
The acquisition matters because AI development depends not only on software models but also on specialised processors. Bringing chip engineers into the business could help Unconventional AI move its hardware research towards commercial products.
Reuters reported that approximately 40 NeuReality employees would join Unconventional AI, which planned to maintain a presence in Israel.