The combination of growth in compute capabilities and availability of large datasets has led to a re-birth of deep learning. Deep Neural Networks (DNNs) have become state-of-the-art in a variety of machine learning tasks spanning domains across vision, speech, and machine translation. Deep Learning (DL) achieves high accuracy in these tasks at the expense of 100s of ExaOps of computation; posing significant challenges to efficient large-scale deployment in both resource-constrained environments and data centers. One of the key enablers to improve operational efficiency of DNNs is the observation that when extracting deep insight from vast quantities of structured and unstructured data the exactness imposed by traditional computing is not required. Relaxing the "exactness" constraint enables exploiting opportunities for approximate computing across all layers of the system stack. In this talk we present a multi-TOPS AI core [3] for acceleration of deep learning training and inference in systems from edge devices to data centers. We demonstrate that to derive high sustained utilization and energy efficiency from the AI core requires ground-up re-thinking to exploit approximate computing across the stack including algorithms, architecture, programmability, and hardware. Model accuracy is the fundamental measure of deep learning quality. The compute engine precision in our AI core is carefully calibrated to realize significant reduction in area and power while not compromising numerical accuracy. Our research at the DL algorithms/applications-level [2] shows that it is possible to carefully tune the precision of both weights and activations to as low as 2-bits for inference and was used to guide the choices of compute precision supported in the architecture and hardware for both training and inference. Similarly, distributed DL training's scalability is impacted by the communication overhead to exchange gradients and weights after each mini-batch. Our research on gradient compression [1] shows by selectively sending gradients larger than a threshold, and by further choosing the threshold based on the importance of the gradient we achieve achieve compression ratio of 40X for convolutional layers, and up to 200X for fully-connected layers of the network without losing model accuracy. These results guide the choice of interconnection network topology exploration for a system of accelerators built using the AI core. Overall, our work shows how the benefits from exploiting approximation using algorithm/application's robustness to tolerate reduced precision, and compressed data communication can be combined effectively with the architecture and hardware of the accelerator designed to support these reduced-precision computation and compressed data communication. Our results demonstate improved end-to-end efficiency of the DL accelerator across different metrics such as high sustained TOPs, high TOPs/watt and TOPs/mm2 catering to different operating environments for both training and inference.