Red Hat, the IBM-owned open source software firm, is acquiring Neural Magic, a startup that optimizes AI algorithms to run on commodity processors.
The transaction is subject to applicable regulatory reviews and other customary closing conditions. The terms weren’t disclosed.
MIT research scientist Alex Matveev and professor Nir Shavit founded Somerville, Massachusetts-based Neural Magic in 2018, inspired by their work in high-performance execution engines for AI.
Neural Magic’s software aims to processes AI workloads on processors at speeds equivalent to specialized chips. By running AI models through off-the-shelf processors, which usually have more available memory, the company’s software can realize speedups.
Big tech companies like AMD and a host of other startups, including NeuReality, Deci, CoCoPie, OctoML, and DeepCube, offer some sort of AI optimization software. But Neural Magic is one of the few with a free offering, and a collection of open source tools to complement it.
Prior to the Red Hat acquisition, Neural Magic managed to raise $50 million in venture capital from backers like Andreessen Horowitz, New Enterprise Associations, Amdocs, Comcast Ventures, Pillar VC, and Ridgeline Ventures.
Red Hat CEO Matt Hicks says Neural Magic’s work on vLLM, an open source project for model serving, is of particular interest. With Neural Magic, Hicks says that Red Hat’s getting a vLLM-based “enterprise-grade” stack that lets customers optimize, deploy, and scale custom and pre-built models across cloud environments with control over infrastructure and security policies.