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Red Hat’s acquisition of Neural Magic addresses enterprise demand for greater performance and cost efficiency when building, deploying, and managing AI-driven applications, enabling organizations to select and optimize open source large language models (LLMs) according to their individual requirements. By integrating Neural Magic’s expertise in inference performance engineering and model optimization, Red Hat strengthens its AI portfolio, complementing existing capabilities for scalable AI lifecycle orchestration across hybrid cloud environments. This combination has the potential to notably increase Red Hat’s differentiation in the rapidly evolving generative AI landscape.