The deal is expected to close in Q2 2022.
Intel has announced plans to acquire Israeli cloud optimization startup Granulate.
The Tel Aviv-based firm develops AI software to streamline operations in the cloud and data centers. The startup said its services enable brands to increase deployment performances, reduce overhead and lower application costs.
To date, Granulate has raised $45.6 million and received backing from Insight Partners, the New York-based VC that also previously invested in Monday.com and WalkMe.
Intel said it will now “rapidly scale” Granulate’s optimization software across its data center portfolio.
No financial details of the Intel purchase were disclosed; however, the company’s announcement said the deal is expected to close in the second quarter of 2022, subject to typical closing conditions. At that time, Granulate’s approximately 120 employees will be integrated into Intel’s Datacenter and AI business unit.
Intel said the acquisition will help its cloud and data center customers “maximize compute workload performance and reduce infrastructure and cloud costs.”
“Today’s cloud and data center customers demand scalable, high-performance software to make the most of their hardware deployments,” said Sandra Rivera, executive vice president and general manager of the Datacenter and AI Group at Intel. “Granulate’s cutting-edge autonomous optimization software can be applied to production workloads without requiring the customer to make changes to its code, driving optimized hardware and software value for every cloud and data center customer.”
The two companies began working together in late 2019 when Granulate was part of Intel’s Ignite startup accelerator program. The pair would go on to work together under a commercial agreement to collaborate on workload optimization on Xeon deployments.
Another collaborator point is that Mobileye, the Intel-owned autonomous vehicle developer, is among Granulate’s customers.
Other users include marketing intelligence firm Singular, digital advertising product maker Perion and software firm Start.io.
"As a part of Intel, Granulate will be able to deliver autonomous optimization capabilities to even more customers globally and rapidly expand its offering with the help of Intel's 19,000 software engineers," said Asaf Ezra, co-founder and CEO of Granulate.