Intel, the American semiconductor company facing financial challenges, is intensifying its efforts to compete with rivals Nvidia and AMD by launching its latest artificial intelligence chip, Gaudi 3, on Tuesday. Designed specifically for generative AI applications, the Gaudi 3 aims to rival Nvidia’s H100 and AMD’s MI300X, both of which are in high demand globally.
Intel claims that the Gaudi 3, first unveiled in April, offers more than double the power efficiency of the H100 and executes AI models 1.5 times faster. The company also announced that IBM plans to utilize the Gaudi 3 in its cloud services to cut operational costs.
On the same day, Intel launched the Xeon 6 server central processing unit (CPU). This CPU enhances AI capabilities in data centers and boasts double the performance of its predecessor, positioning Intel to maintain its leadership in the server CPU market, which currently holds over 70% share. However, the company faces rising competition from AMD.
According to Yahoo Finance, Intel’s new AI chips promise improved performance and power efficiency. The company seeks to capture market share from Nvidia, the dominant global AI chip market player, with AMD close behind. This launch is critical for Intel as it strives to prove its relevance in the rapidly growing AI sector.
However, Intel’s second-quarter results fell short of market expectations, falling 52% this year, and analysts predict that its third-quarter performance may also disappoint. In contrast, Nvidia and AMD have seen their stock prices rise by 142% and 12%, respectively.
Intel has recently implemented restructuring plans to overcome these challenges, including workforce reductions and the spin-off of its foundry services. Reports suggest that the company has received acquisition offers from Qualcomm and a $5 billion investment proposal from Apollo Global Management, a U.S. asset management firm.
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