Intel Corporation is gearing up to capitalize on the potential of artificial intelligence (AI) in its PC and data-center businesses. The tech giant recognizes the enormous opportunities presented by AI and its ability to transform various industries. During Intel’s recent earnings call, executives expressed their enthusiasm for AI and highlighted the potential for providing AI-related chips in the PC business. Additionally, Intel’s data-center accelerator chips, including the forthcoming Gaudi chip, are expected to play a significant role in powering AI applications.
However, Intel faces pressure from competitors and the need to avoid missteps that have plagued the company in the past. It will be crucial for Intel to execute product launches smoothly and avoid any delays, as experienced prior to current Chief Executive Pat Gelsinger taking over. While Intel seeks to establish a contract manufacturing business to compete with Taiwan Semiconductor Manufacturing Co., it must navigate this new venture carefully to leverage one of the most significant opportunities it has encountered in years.
Despite the immense potential in the field of AI, Intel will need to prove its capabilities to skeptics in order to succeed. Experts suggest that rival company Advanced Micro Devices Inc. may presently be better positioned to capture data-center spending due to its focus on building AI-powered servers. The traction of Intel’s current version of the Gaudi chip remains uncertain. Nevertheless, Gelsinger expressed confidence in attracting customers and expanding business opportunities with the upcoming Gaudi3 AI chip.
Many companies across various sectors, including those with data centers, cloud-service providers, and hyperscalers, are actively increasing their server capacity by incorporating higher-end chips to accommodate AI workloads. While Nvidia Corp. currently dominates the AI market with its specialized graphics chips (GPUs), Intel aims to capture a significant share of this market with its AI accelerator chips.
Looking beyond the data center, Intel sees vast potential for AI in the PC market. Gelsinger anticipates that Intel’s next Meteor Lake chips will usher in the era of AI-enabled PCs, similar to the introduction of WiFi functionality through the Centrino chip family in 2003. By embedding AI capabilities directly into the PC, Intel aims to address latency challenges associated with back-and-forth communication with the cloud or data centers. This strategy aligns with Intel’s emphasis on bringing AI to the client, exemplified by the native AI capabilities of the upcoming Meteor Lake chips.
While Intel makes a compelling case for its position in the AI revolution, only time will tell if Gelsinger can steer the company clear of past mistakes and guide it toward success as rivals vie for a share of this lucrative market. As the clock ticks, Intel continues to navigate the AI landscape, driven by the determination to leverage the potential of AI in its PC and data-center businesses.
