Akamai and Neural Magic Partner to Accelerate Deep Learning AI
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Insights
The strategic partnership between Akamai Technologies and Neural Magic represents a significant advancement in the deployment of deep learning AI on a global scale, particularly for CPU-based servers. This collaboration is poised to disrupt the traditional reliance on GPU resources for AI workloads, offering a more cost-effective alternative without compromising performance. By leveraging Akamai's distributed computing infrastructure, the partnership aims to reduce latency and improve performance for data-intensive AI applications, especially at the edge where large volumes of data are generated.
The move towards CPU-based solutions for deep learning inference models could have a ripple effect on the semiconductor industry, potentially reducing the demand for high-end GPUs traditionally used for these tasks. This shift could also influence the competitive landscape, as companies that have heavily invested in GPU-based infrastructure may need to reassess their strategies in light of more cost-efficient CPU-based alternatives.
The partnership's focus on edge-AI inference addresses the growing demand for processing power closer to the source of data generation. This approach aligns with the trend towards decentralized computing and the Internet of Things (IoT), where devices at the network's edge require immediate, local processing to enable real-time decision-making and analytics. The market for edge computing is expanding rapidly and Akamai's Generalized Edge Compute (Gecko) initiative could position the company as a key player in this burgeoning field.
Furthermore, the strategic partnership may catalyze innovation across various industries by making AI more accessible and affordable. Sectors that stand to benefit include healthcare, automotive and manufacturing, where edge-AI can enhance operational efficiency and enable new business models. However, the partnership's success will depend on the ability of Akamai and Neural Magic to effectively scale their solution and demonstrate tangible benefits to potential customers.
The announcement of Akamai's partnership with Neural Magic could have implications for Akamai's financial performance. By integrating Neural Magic's software into its offerings, Akamai may be able to capture a larger share of the AI market, potentially increasing revenue streams and improving margins through cost efficiencies. Investors should monitor the adoption rate of the combined solution and its impact on Akamai's financial metrics, particularly as it relates to the company's cloud computing and security services.
While the partnership is promising, it is essential to consider the execution risks and the competitive response from other players in the AI and cloud computing space. The ability of Akamai and Neural Magic to deliver on their promises and to maintain technological leadership will be critical in determining the long-term financial benefits of the partnership. As with any strategic initiative, it will be important to track progress against milestones and the reception from the enterprise customers that the partnership targets.
Companies announce plan to deploy high-powered deep learning artificial intelligence software at a massive global scale
Neural Magic's solution enables deep learning models to run on cost-efficient CPU-based servers rather than on expensive GPU resources. The software accelerates AI workloads using automated model sparsification technologies, available as a CPU inference engine, complementing Akamai's ability to scale, protect, and deliver applications at the edge. This allows the companies to deploy the capabilities across Akamai's globally distributed computing infrastructure, offering organizations lower latency and improved performance for data-intensive AI applications.
Moreover, the partnership can help foster innovation around edge-AI inference across a host of industries. The combined capabilities of Akamai and Neural Magic are particularly well suited for applications in which massive amounts of input data are generated close to the edge, placing affordable processing power and security closer to the data sources. Akamai recently announced a new Generalized Edge Compute (Gecko) initiative to embed cloud computing capabilities into its massive edge network, which will ultimately help support such applications and workloads among many others.
"Delivering AI models efficiently at the edge is a bigger challenge than most people realize," said John O'Hara, SVP of Engineering and COO at Neural Magic. "Specialized or expensive hardware and associated power and delivery requirements are not always available or feasible, leaving organizations to effectively miss out on leveraging the benefits of running AI inference at the edge."
"We intend to make AI smarter and faster," said Ramanath Iyer, Chief Strategist at Akamai. "Scaling Neural Magic's unique capabilities to run deep learning inference models across Akamai gives organizations access to much-needed cost efficiencies and higher performance as they move swiftly to adopt AI applications."
Akamai and Neural Magic share a common origin, both having been born out of Massachusetts Institute of Technology (MIT). They continue to maintain their respective corporate headquarters nearby.
The Akamai Qualified Computing Partner Program is designed to make solution-based services that are interoperable with Akamai's cloud computing services easily accessible to Akamai customers. The services are provided by Akamai technology partners that complete a rigorous qualification process to ensure they are readily available to deploy and scale across the globally distributed Akamai Connected Cloud.
About Neural Magic
Neural Magic accelerates AI for the enterprise and brings operational simplicity to GenAI deployments. As a software-delivered solution, Neural Magic optimizes open-source models, like large language models, to run efficiently on commodity hardware. Organizations can spend less to advance AI initiatives to production, without sacrificing performance and accuracy with their models. Founded by a MIT professor and an AI research scientist, challenged by the constraints of existing hardware, Neural Magic enables a future where developers and IT can tap into the power of state-of-the-art, open-source AI with none of the friction.
About Akamai
Akamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences — helping billions of people live, work, and play every day. Akamai Connected Cloud, a massively distributed edge and cloud platform, puts apps and experiences closer to users and keeps threats farther away. Learn more about Akamai's cloud computing, security, and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.
Contacts
Chris Nicholson
Akamai Media Relations
+1.508.517.3703
cnichols@akamai.com
Tom Barth
Akamai Investor Relations
+1.617.274.7130
tbarth@akamai.com
Donna Loughlin Michaels
Neural Magic Media Relations
LMGPR
408.393.5575
donna@lmgpr.com
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SOURCE Akamai Technologies, Inc.
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