Intel has recently made an announcement regarding the release of a new AI accelerator chip, the Gaudi 3 processor, as part of its bid to challenge industry leader NVIDIA. The new chip is set to be widely available for purchase in the third quarter of 2024, with a focus on enhancing productivity in AI system training and software deployment.
With the increasing demand for AI-related services, tech companies are actively seeking specialized accelerators, with NVIDIA currently holding a significant advantage. Despite previous versions of Intel’s Gaudi chip falling short in the market, Intel’s CEO Pat Gelsinger is confident in the potential success of the new model.
Gelsinger highlighted the need for alternatives in the market alongside NVIDIA’s competition, emphasizing Intel’s commitment to providing a competitive choice. Additionally, Intel’s chips are expected to be priced significantly lower than NVIDIA’s current and upcoming chips, offering a more cost-effective solution.
In an attempt to rival NVIDIA, Intel faces challenges as the success of NVIDIA’s H100 chip led to a substantial increase in the company’s revenue and market value. NVIDIA aims to strengthen its dominance further with the introduction of the new Blackwell chips platform announced in March.
Intel claims that the Gaudi 3 chip will outperform NVIDIA’s H100 in terms of speed and energy efficiency, facilitating faster AI model training and software performance improvements. The chip is expected to be on par with NVIDIA’s newest H200, excelling in certain aspects while trailing slightly in others.
Gelsinger emphasized that Intel’s goal extends beyond catching up with NVIDIA, aiming to make a significant breakthrough in the AI industry that extends beyond data centers to encompass personal computers, mobile devices, and network equipment.
Intel has ramped up Gaudi chip supplies to meet the escalating demand, with the company’s 2024 portfolio exceeding $2 billion and continuing to expand. Market projections forecast a substantial growth in corporate spending on generative AI, highlighting the significant gap between Intel and NVIDIA in this sector.
Following the announcement, Intel’s shares experienced a modest increase of less than 1%, reaching $38, after a year of decline amounting to 24%.