Shares of Facebook (FB - Free Report) hit a new all-time high on Tuesday after it was announced that the social network giant will partner with Intel (INTC - Free Report) to help the firm with its new artificial intelligence chip.
Intel revealed at The Wall Street Journal’s “D. Live” global technology conference on Tuesday that it is set to work with Mark Zuckerberg’s company on its newest AI chip. Facebook will provide technical input for Intel’s new Nervana Neural Network Processor chip, which the company expects to be available on a limited basis later this year.
Intel’s new AI chip is part of the next big wave of artificial intelligence processors that work to help improve deep learning AI capabilities. Deep learning allows computers to understand and recognize everything from speech, objects in photos, and much more—ranging far beyond more basic task-specific algorithms.
Intel’s CEO expects that cognitive and AI technologies are currently on a track to become a $46 billion a year industry by 20201.
“We are thrilled to have Facebook in collaboration sharing their technical insights as we bring this new generation of AI hardware to market,” Intel CEO Brian Krzanich said in a statement.
Facebook’s role in helping Intel bring a new deep learning AI chip to market could help the company expand beyond social media platforms and consumer-facing apps. The announcement helped shares of Facebook surge to hit a new all-time high of $176.12 per share.
On top of the Intel AI chip announcement, Facebook recently continued its trend of gobbling up smaller tech startups and app makers when it announced the acquisition of anonymous compliment app, TBH, for less than $100 million.
TBH is an acronym for “to be honest.” The app launched in August and has been downloaded more than 5 million times since then. Last month, Facebook’s newest app recently topped the list of free apps in Apple’s (AAPL - Free Report) App Store.
Shares of Facebook have climbed over 50% so far this year, and the stock is currently a Zacks Rank #1 (Strong Buy), which also scored an “A” grade for Growth in our Style Scores system.
Make sure to check out Zacks over the next few weeks for in-depth previews of Facebook’s next quarterly earnings report on Nov. 1.
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