Red Hat has announced its acquisition of Neural Magic, a software company focused on boosting generative AI (GenAI) inference performance. This partnership aims to expand Red Hat’s AI offerings across hybrid cloud environments.
With this addition, Red Hat will support enterprise AI demands while enhancing cost-effective, scalable solutions for AI integration.
Neural Magic’s focus on inference optimization will strengthen Red Hat’s open-source strategy, especially as large language models (LLMs) require vast computing resources. Neural Magic specializes in software that supports AI workloads on standard hardware, making AI tools more accessible for organizations of various sizes. The acquisition will help Red Hat provide more adaptable, high-performance AI solutions without extensive infrastructure changes.
As an MIT spin-off, Neural Magic has built tools like the vLLM framework, which runs on multiple hardware types, including NVIDIA, AMD, and Intel. This adaptability aligns well with Red Hat’s hybrid cloud vision.
In addition to vLLM, Neural Magic’s LLM Compressor tool enables faster, more efficient AI processing, cutting costs and improving performance across data centers and cloud networks.
“Neural Magic’s technology enhances our AI offerings for hybrid environments, helping businesses scale AI across all platforms,” said Red Hat CEO Matt Hicks. The acquisition will integrate Neural Magic’s capabilities into Red Hat’s existing tools, such as Red Hat Enterprise Linux AI and Red Hat OpenShift AI, which manage and serve machine learning models across cloud or on-prem environments.
The acquisition also complements Red Hat’s InstructLab, an open-source project that collaboratively develops and fine-tunes AI models. Neural Magic’s tools will directly support InstructLab and Red Hat’s Granite LLMs, benefiting organizations looking to adopt AI more flexibly.
Pending regulatory approval, both companies anticipate a strong collaboration. Neural Magic’s CEO Brian Stevens added, “Joining Red Hat allows us to expand AI access for businesses, utilizing open-source innovation to help organizations scale.”
