Intel Unveils Server and PC Chips in Push to Join AI Gold Rush
Intel Corp., the leading manufacturer of personal computer processors, announced the launch of new chips for PCs and data centers, aiming to grab a larger share of the thriving market for artificial intelligence (AI) hardware. The company’s lineup includes updated Xeon server chips, which are touted as the second overhaul of that processor in less than a year. These new chips prioritize improved performance and memory while reducing power consumption.
To directly process AI functions, Intel introduced the new Ultra Core chips for laptops and desktop computers. The company believes these chips will enable PCs to efficiently handle AI tasks, marking a significant step forward in AI capabilities.
One of Intel’s high-stakes product launches is the Gaudi 3, which competes directly with Nvidia Corp.’s industry-leading H100. AI accelerators like the Gaudi 3 are instrumental in developing chatbots and other rapidly proliferating services. The release of the Gaudi 3 is scheduled for 2024, and Intel is eager to prove its worth in the fiercely competitive AI hardware market.
Intel’s CEO, Pat Gelsinger, aims to reignite Intel’s growth by capitalizing on AI features. However, he faces intense competition, particularly from rival Advanced Micro Devices Inc., which has gained market share in both PCs and servers. Additionally, some of Intel’s major customers have begun designing their own chips in-house.
Nvidia, renowned for its data center chips and AI accelerators, has emerged as a dominant force in the market. The success of Nvidia’s products has propelled the company’s valuation above $1.1 trillion and is projected to surpass Intel’s total revenue this year, according to analysts. Intel, traditionally the world’s largest chipmaker, is now facing a tough battle.
While AMD lags behind Nvidia in the AI accelerator space, the company recently unveiled its contender, the MI300, which will be launched next year. AMD’s forecast predicts that the market for AI accelerators could surpass $400 billion in the next four years, indicating the tremendous potential for growth and innovation in this field.
Intel aims to gain an advantage by shifting AI processing from data centers to devices. The introduction of Ultra Core chips is a testament to this strategy. These chips, expected to be available in approximately 230 PC models from manufacturers such as Dell Technologies Inc. and Samsung Electronics Co., focus on processing AI tasks directly on individual devices.
Another aspect that may work in Intel’s favor is the future trend of running completed software, rather than just focusing on training AI models. This shift could be efficiently managed by Xeon processors in data centers and with PC chips. However, running AI software on laptops tends to consume significant battery power. To address this concern, Intel has ensured that the new Core parts operate more efficiently and deliver more than 10 hours of battery life, even during demanding tasks.
Intel has also highlighted the improvements made to its Xeon range, which provides significant enhancements in running AI-related workloads. The new Xeon components boast a 42% improvement over the previous generation while achieving a 36% overall improvement in performance per watt of electricity. Intel’s commitment to accelerating product releases will bring more versions of the Xeon line in the first half of next year.
As Intel makes these strategic moves, it aims to tap into the potential of AI in various sectors. While the industry has primarily focused on training AI models, the future will witness a shift towards deploying completed software. Intel is positioning itself to be at the forefront of this revolution, with its cutting-edge chips and commitment to pushing the boundaries of AI technology.
In conclusion, Intel’s latest product announcements mark the company’s determined efforts to actively participate in the AI gold rush. By unveiling new server and PC chips, Intel aims to compete with industry leaders and cement its position in the evolving AI hardware market. With a focus on performance, efficiency, and processing AI functions on devices themselves, Intel demonstrates its commitment to meeting the demands of an AI-driven world.
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