U.S. chipmaker Intel announced new artificial intelligence chips for data centers on Tuesday, positioning itself to compete with industry rivals Nvidia and AMD, both of which showcased their upcoming chips in the past two days.
During the Computex tech conference in Taiwan, Intel CEO Pat Gelsinger introduced the Xeon 6 processor, which promises enhanced performance and power efficiency for high-intensity data center workloads compared to its predecessor. This announcement comes on the heels of Nvidia and AMD launching new AI chips on Sunday and Monday, respectively, as all three companies vie for dominance in the burgeoning AI sector.
This move also follows Intel’s launch of its 5th Gen Intel Xeon processors for data centers six months ago, and its Gaudi 3 processor for AI model training and deployment two months ago. Notably, Intel revealed that the prices for its Gaudi 2 and Gaudi 3 AI accelerators are lower than those of competing chips.
“Customers are seeking high-performance, cost-effective AI training and inferencing solutions,” Gelsinger said. “They’ve begun to look for alternatives like Gaudi, desiring choice, open software and hardware solutions, and rapid time-to-market solutions with significantly lower total cost of ownership (TCO).”
In addition to the Xeon 6, Intel disclosed architecture details for its upcoming Lunar Lake processors, aimed at expanding the AI PC market. The Lunar Lake chips, expected to ship in the third quarter, are designed to compete with Nvidia’s and AMD’s AI-specific PC chips.
Intel is striving to catch up to Nvidia and AMD after largely being sidelined during the recent AI boom, which saw tech giants like Meta, Microsoft, and Google purchasing vast quantities of Nvidia chips. Both Nvidia and AMD have established annual roadmaps for new data center chips. On Sunday, Nvidia unveiled new “Rubin” chips set to succeed the “Blackwell” model announced in March. AMD, meanwhile, has outlined timelines for new Instinct accelerators each year until 2026.
Unlike Nvidia and AMD, which concentrate exclusively on chip design, Intel is involved in both designing and manufacturing its chips. However, Intel’s foundry business has faced challenges, with a wider operating loss of $7 billion in 2023 compared to the previous year. The company has also lost its edge in chip manufacturing to overseas competitors like Taiwan Semiconductor Manufacturing Co. (TSMC).
Nevertheless, Intel could see significant advancement in semiconductor manufacturing and research and development, thanks to nearly $20 billion in funding from the Biden administration’s CHIPS and Science Act. This substantial financial support aims to bolster the domestic semiconductor industry, potentially helping Intel regain its competitive edge.
Overall, Intel’s latest announcements at Computex signal a strong push to re-establish its presence in the AI chip market and compete more effectively with Nvidia and AMD. The company’s focus on providing cost-effective and high-performance solutions reflects its strategy to attract customers looking for alternatives in the rapidly growing AI sector.
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