Red Hat’s acquisition of Neural Magic, while undisclosed in terms of financials, brings on board a team of approximately 40 employees with deep expertise in optimizing, deploying and managing LLMs. Neural Magic secured $35 million in its latest round of venture funding in late 2021, bringing its total funding to $55 million. The company is renowned for its contributions to the vLLM open-source project, dedicated to improving the efficiency, scalability, management, accuracy and performance of LLMs. With a portfolio of 60 patents and a wealth of expertise reflected in over 200 research papers on AI model optimization, and general machine learning and high-performance computing research, Neural Magic holds significant intellectual property and engineering talent. This infusion of talent and intellectual property in the AI arena could become an important asset for Red Hat.