Analog Devices, Inc. (NASDAQ: ADI) and Alif Semiconductor today announced that they have entered into a definitive agreement under which ADI will acquire Alif in an all-cash transaction for $1.35 billion.
Artificial intelligence is entering a new phase as models move beyond interpreting words and images to understanding context and interacting with the physical world. This transition requires systems that can reason from signals such as motion, sound, vibration, radio waves, and thermodynamics, and operate locally within demanding power, latency, security, and reliability constraints. At ADI, this is called Physical Intelligence.
Alif is redefining edge intelligence with a sophisticated platform of high-efficiency AI-native microcontrollers and fusion processors. Its heterogeneous architecture enables real-time sensor fusion, low-latency inference, and on-device AI, bringing advanced intelligence to demanding physical systems.
Combining ADI’s leadership in sensing, signal processing, power, connectivity, and application software with Alif’s leading-edge digital platform will accelerate the delivery of more complete Physical Intelligence solutions. Together, ADI and Alif can address a broader range of customers’ most complex system-level challenges.
“AI is moving out of the data center and into the physical world, where latency, power, and trust cannot be compromised. That is the domain ADI has mastered for decades, at the delicate electro-physical interface where real-world signals become actionable intelligence. By combining Alif’s digital processing capabilities with our leadership in multi-modal sensing, signal processing, power, connectivity, and software, we can empower customers to create entirely new classes of secure, intelligent systems that sense, reason, and act locally in real time. This is the next frontier of AI: embodied and deterministic. This is Physical Intelligence in action.”
– Vincent Roche, CEO and Chair of ADI
“Alif was founded to reimagine what a microcontroller can be in the AI era. We engineered a heterogeneous architecture from the start, integrating dedicated low-power neural processing with connectivity, security, and intelligent power management that delivers compute resources precisely where they’re needed. Combined with ADI’s deep physical-domain expertise and broad analog system capabilities, we can expand our reach to deliver the solutions that can power the future of Physical Intelligence.”
-Reza Kazerounian, Co-Founder and President of Alif
Analog Devices, Inc. (NASDAQ: ADI) is a leading global semiconductor company focused on connecting the physical and digital realms and enabling innovation at the Intelligent Edge. ADI brings together analog, digital, AI, and software technologies to develop solutions that address climate challenges, strengthen reliable human connectivity, and advance key industries including automation and robotics, mobility, healthcare, energy, and data centers. With more than $11 billion in FY2025 revenue, ADI helps innovators continue to push the boundaries of what is possible.
Headquartered in Pleasanton, California, Alif Semiconductor develops next-generation EdgeAI microcontrollers and fusion processors designed to deliver secure connectivity and high power efficiency. Its scalable architectures range from single-core to multi-core platforms and incorporate integrated neural processing units (NPUs) along with advanced graphics acceleration capabilities.
