ADI to buy AI chip startup Alif for $1.35 billion

US analog chip maker Analog Devices (ADI) said it has reached a final deal to buy smart MCU company Alif Semiconductor for $1.35 billion in cash. The deal is expected to close by the end of 2026.

Alif focuses on energy-efficient AI-native MCUs and fusion processors. Its design supports real-time sensor fusion, low-latency inference, and on-device AI. ADI said combining this with its sensing, signal processing, power, and software strengths can speed up physical AI solutions.

ADI CEO Vincent Roche said AI is moving from data centers into the physical world, where latency, power, and trust matter. The acquisition aims to support embodied and deterministic AI that can sense, reason, and act locally in real time.