Red Hat: Acquisition Of Neural Magic Completed

By Amit Chowdhry ● Yesterday at 12:43 PM

Red Hat, a leading provider of open-source solutions, announced that it has completed its acquisition of Neural Magic, a pioneer in software and algorithms that accelerate genAI inference workloads. With Neural Magic, Red Hat gains expertise in inference performance engineering and model optimization, helping further the company’s vision of high-performing AI workloads that directly map to unique customer use cases, wherever needed across the hybrid cloud.

The large language models (LLMs) support gen AI use cases, but it is often too expensive and resource-intensive for most organizations to use effectively. And to address these challenges, Red Hat views smaller, optimized and open source-licensed models driven by open innovation across compute architectures and deployment environments as key to the future success of AI strategies.

Neural Magic’s commitment to making optimized and efficient AI models a reality furthers Red Hat’s ability to deliver on this AI vision. And Neural Magic is also a leading contributor to vLLM, an open source project developed by UC Berkeley for open model serving, which will help bring even greater choice and accessibility in how organizations build and deploy AI workloads.

The expertise and capabilities of Neural Magic will be integrated into Red Hat AI, Red Hat’s portfolio of gen AI platforms. And built with the hybrid cloud in mind, Red Hat AI encompasses:

— Red Hat Enterprise Linux AI (RHEL AI), a foundation model platform to more seamlessly develop, test and run the IBM Granite family of open source-licensed LLMs for enterprise applications on Linux server deployments

— Red Hat OpenShift AI, an AI platform that provides tools to rapidly develop, train, serve and monitor machine learning models across distributed Kubernetes environments on-site, in the public cloud or at the edge

— InstructLab, an approachable open source AI community project created by Red Hat and IBM that enables anyone to shape the future of gen AI via the collaborative improvement of open source-licensed Granite LLMs using InstructLab’s fine-tuning technology and

— vLLM, LLM Compressor, pre-optimized models and more are all slated to be incorporated into Red Hat AI, making Neural Magic an integral piece of Red Hat’s AI platform offerings

KEY QUOTES:

“Efficiency, optimization and choice aren’t unique concepts when it comes to traditional enterprise IT, and we feel that gen AI should be no different. By adding Neural Magic’s expertise in gen AI performance engineering and optimization to Red Hat AI, we’re furthering our commitment to a gen AI that answers customers’ unique needs, from where workloads run to how they are tuned and trained.”

– Matt Hicks, president and CEO, Red Hat

“Neural Magic’s research and technical contributions to open source AI have significantly reduced the infrastructure required to deploy state-of-the-art large language models at scale. Red Hat shares our vision that the Future of AI is Open, and we are looking forward to together enabling enterprises to capture the value of GenAI without all of the friction.”

– Brian Stevens, CEO, Neural Magic

“Red Hat’s acquisition of Neural Magic is a strategic enhancement to its AI capabilities, facilitating AI deployment across hybrid clouds by leveraging Neural Magic’s expertise in model optimization and inference acceleration. This move not only aligns with Red Hat’s commitment to open-source innovation but also positions the company to offer more cost-effective, scalable AI solutions that reduce dependency on specialized hardware.”

– Dave McCarthy, research vice president, Cloud and Edge Services, Worldwide Infrastructure Research, IDC

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