Jeff Bezos's chip company buys Israeli startup for about $200 million

Jeff Bezos's chip company, Unconventional AI, is acquiring the Israeli startup NeuReality for approximately $150-200 million. NeuReality has developed communication processors and an operating system for managing AI data, which will be integrated into the buyer's development of energy-efficient AI chips.

Jeff Bezos's chip company, Unconventional AI, is acquiring the Israeli startup NeuReality for approximately $150-200 million in a deal combining cash and stock. NeuReality, founded in 2019 by Moshe Tanach, Zvika Shmueli, and Yossi Kasus, has developed an AI inference processor and a communication processor (NIC). The acquisition aims to integrate NeuReality's technology into Unconventional's development of highly energy-efficient AI chips. The exact deal amount has not been officially disclosed, and the companies did not respond to Globes' inquiry. The deal allows NeuReality's employees and investors, including Varana Capital, XT, Cardumen, and Samsung, to hold shares in Unconventional, which raised $475 million at a valuation of $4.5 billion. The article notes that the deal reflects the difficulty for Israeli chip companies to grow independently, and that major Silicon Valley funds do not invest in Israeli chip companies.