India, Sept. 11 -- Analog Devices Inc. and Alif Semiconductor have entered into a definitive agreement under which ADI will acquire Alif in an all-cash transaction for $1.35 billion.

AI 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 heterogeneo...