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Intel Corp. is rolling out a new version of its artificial intelligence chip, aiming to challenge Nvidia Corp. in one of the fastest-growing parts of the semiconductor industry.\u00a0<\/p>\n<\/p><\/div>\n
The updated processor, called Gaudi 3, will be widely available in the third quarter, Intel said at a company event early Tuesday. The chip is designed to boost performance in two key areas: helping train AI systems \u2014 a process that involves bombarding them with data \u2014 and running the finished software.<\/p>\n
Booming demand for AI services has sent tech companies scrambling for these so-called accelerator chips, but Nvidia has seen most of the benefit. Earlier versions of Gaudi failed to achieve the market share gains that Intel had been hoping for, Chief Executive Officer Pat Gelsinger has said. He expects the new model to have a bigger impact.<\/p>\n
Intel shares gained 1.4 per vent to $38.50 as of 11:58 a.m. in New York on Tuesday, reversing an earlier decline. They had been down 24 per cent this year through Monday\u2019s close.<\/p>\n
Challenging Nvidia won\u2019t be easy. The runaway success of that company\u2019s H100 accelerator helped more than double revenue and sent its market valuation over $2 trillion. And now Nvidia is looking to build on its lead with a just-announced chip platform called Blackwell. Systems based on that product will be available later this year, the company said in March.<\/p>\n
According to Intel\u2019s assessment, Gaudi 3 will be faster and more power-efficient than the H100. It will train certain types of AI models 1.7 times more quickly and be 1.5 times better at running the software, the chipmaker claims. The product will be roughly equal with Nvidia\u2019s newer H200, Intel said, performing slightly better in some areas and a bit behind in others.<\/p>\n
Intel, based in Santa Clara, California, said it can\u2019t provide comparisons with Nvidia\u2019s upcoming Blackwell line until those products are publicly available. Intel rival Advanced Micro Devices Inc. \u2014 its longtime competitor in personal computer processors \u2014 also is pushing into the field. It unveiled an accelerator lineup called MI300 in December.<\/p>\n
Intel\u2019s Gelsinger has said that he\u2019s not just trying to catch up with Nvidia. He expects AI to bring a bigger windfall for the industry \u2014 especially as the technology spreads beyond its current concentration in the data centers of companies such as Microsoft Corp. and Alphabet Inc.\u2019s Google.<\/p>\n
Personal computers, mobile phones and networking gear will require chips that are able to handle AI tasks and provide users with instantaneous feedback \u2014 something that\u2019s not always possible with remote server farms.<\/p>\n
When Intel announced its fourth-quarter results in late January, Gelsinger said he was increasing the supply of Gaudi to meet growing orders and that the company has a \u201cpipeline” for 2024 of \u201cabove $2 billion and growing.” The broader market for corporate spending on generative AI gear will increase from $40 billion in 2024 to $151 billion in 2027, Intel said, citing market research.<\/p>\n
But that just underscores how much of a lead Nvidia has. The company had data center revenue of more than $47 billion during the 12 months ended in January. In its current fiscal year, that total will top $95 billion, according to analysts\u2019 estimates.<\/p>\n
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