On Wednesday, Micron Technology Inc. declared its intention to invest $100 million in startup firms working on artificial intelligence. The move is in keeping with a trend toward providing the technology needed for what Wikibon analyst David Floyer (@dfloyer) describes as “matrix applications,” fast-growing technology, such as internet of things devices, virtual and artificial reality, and modern gaming consoles, which require a lot of memory.

“All of these different areas are relying on AI to make a difference,” said Floyer, host of theCUBE, SiliconANGLE Media’s mobile livestreaming studio. “Micron is in the right place at the right time in terms of the speed at which memory is developing and the opportunities to make a difference.”

Floyer was joined at the Micron Insight 2018 event in San Francisco by co-host Dave Vellante (@dvellante), and they discussed the business reasons behind Micron’s increased AI investment and how the company has managed technology transitions. (* Disclosure below.)

Data flowing to chips

Micron’s decision to invest more heavily in AI-related technologies follows a realization by company executives that the explosion of data being generated by self-driving cars, automated factories, and virtual reality platforms will need to be stored and managed on the firm’s chips. The company intends to invest in both hardware and software startups working on AI innovation.

“The theme is accelerated intelligence, the blending together of memory, storage and AI,” Vellante said. “They’ve done a good job of investing in technology transitions ahead of their competition.”

Staying ahead of the competition for Micron means continuing to drive its own business growth, which has been largely concentrated in the direct random access memory or DRAM field. The memory business has also been prone to up and down cycles, a trend that the company believes it can manage.

“Micron is putting forth the premise that they have begun to be able to dampen the fluctuations, the peaks and the valleys,” Vellante said. “This is a company that last quarter had 70-percent gross margins in its DRAM business.”

Micron’s push into AI could trigger another new wave of innovation as more funds begin to flow into the space. In addition to its investment plan for startups, the company also announced that its foundation would establish a $1-million grants fund for universities and nonprofits conducting AI research.

“We keep on saying each year, we’ve witnessed the most change in technology that we’ve ever seen, and next year it gets faster and faster,” Floyer said. “It’s absolutely amazing.”

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Micron Insight 2018. (* Disclosure: TheCUBE is a paid media partner for the Micron Insight event. Neither Micron Technology Inc., the event sponsor, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: MicronTech