In a bid to compete with rival chips from Nvidia and AMD that power large and energy-intensive AI models, Intel has unveiled its latest computer chips, including Gaudi3. This new chip, set to launch next year, is specifically designed for generative AI software. With Nvidia currently dominating the market with its GPUs that power prominent AI models like OpenAI’s ChatGPT, Intel aims to attract AI companies away from its competitor’s stronghold. Although Intel’s shares were up about 2% on Thursday following the announcement, it remains to be seen how successful Gaudi3 will be in challenging Nvidia’s position in the market.
Historically, Nvidia has enjoyed a significant advantage in the AI chip market, with its H100 chip being the preferred choice for companies building large chip farms to power AI applications. AMD has attempted to contest Nvidia’s dominance with the upcoming MI300X chip, set to be shipped in 2024. Now, Intel enters the race with Gaudi3, a product of its acquisition of chip developer Habana Labs in 2019. By venturing into the generative AI space, Intel aims to capitalize on the growing excitement surrounding this technology and position its AI PC as the star of the show for 2023.
Complementing the Gaudi3 announcement, Intel also unveiled its Core Ultra processors, which are designed for Windows laptops and PCs. These processors include a specialized AI component known as an NPU, enabling faster AI program execution. While these chips may not have the same level of power as Nvidia’s GPUs for running applications like ChatGPT offline, they excel at handling smaller tasks. For example, Intel highlighted how its chips enable Zoom’s background-blurring feature. Built using the company’s 7-nanometer process, these chips offer improved power efficiency compared to their predecessors.
Aside from AI capabilities, Intel’s Core Ultra chips also boast enhanced gaming performance. The added graphics muscle in these chips can significantly improve the speed of programs like Adobe Premier, offering a more seamless user experience. The launch of laptops featuring the fifth-generation Xeon processors demonstrates Intel’s commitment to delivering a powerful computing experience to consumers.
Intel’s Xeon processors, known for their utilization alongside Nvidia GPUs in training and deploying generative AI, continue to power servers used by large organizations and cloud companies. Although Intel did not provide pricing details, previous Xeon processors commanded thousands of dollars. The latest iteration of Xeon processors is particularly well-suited for inferencing, the less power-hungry process of deploying AI models. This update underscores Intel’s continued investment in serving the needs of large organizations and the growing demand for AI-related technology.
The introduction of Intel’s Gaudi3 chip marks a significant step in the company’s pursuit of challenging Nvidia’s dominance in the AI chip market. With Gaudi3 and the Core Ultra processors, Intel aims to capture the attention of AI companies and offer them alternatives to Nvidia’s offerings. While Intel’s stock saw a modest rise following the announcement, it remains to be seen how well the market will respond to its new products. As the battle for AI chip supremacy intensifies, Intel faces the challenge of proving that its technology can rival Nvidia’s established and widely adopted solutions. However, by focusing on generative AI, gaming capabilities, and catering to the needs of large organizations, Intel demonstrates its commitment to staying relevant in this fast-evolving industry.
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