Intel Unveils New AI Chip Amid Increasing Competition with Nvidia


Intel has announced its latest artificial intelligence chip, named Gaudi 3, as the competition intensifies among chipmakers striving to produce semiconductors capable of training and deploying large AI models.

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This move comes as companies seek to meet the growing demand for AI capabilities, exemplified by OpenAI’s ChatGPT model.

According to Intel, the new Gaudi 3 chip boasts over twice the power efficiency and one-and-a-half times the speed of Nvidia’s H100 GPU.

It offers various configurations, including a bundle of eight chips on one motherboard or a card compatible with existing systems.

During testing, Intel evaluated the Gaudi 3 chip on models like Meta’s open-source Llama and the Falcon, backed by Abu Dhabi.

The chip demonstrated proficiency in training and deploying models, including Stable Diffusion and OpenAI’s Whisper model for speech recognition.

Intel’s entry into the AI chip market challenges Nvidia’s dominance, particularly in the data center segment.

While Nvidia commands an estimated 80% market share with its GPUs, Intel aims to offer a competitive alternative with its Gaudi 3 chip.

The company expects strong demand from customers, including Dell, Hewlett Packard Enterprise, and Supermicro, with availability slated for the third quarter.

The expansion of AI infrastructure by cloud providers and businesses indicates potential opportunities for other competitors, notwithstanding Nvidia’s continued dominance.

Additionally, rising costs associated with running generative AI and purchasing Nvidia GPUs are driving the demand for alternative suppliers.

Intel’s strategy involves collaborating with chip and software giants like Google, Qualcomm, and Arm to develop open software solutions.

By embracing openness and interoperability, Intel aims to offer customers flexibility in selecting AI chip providers.

Built on a five nanometer process, Gaudi 3 represents Intel’s commitment to advanced manufacturing techniques.

Furthermore, the company plans to manufacture AI chips, potentially for external companies, at a new factory in Ohio slated to open in 2027 or 2028, according to CEO Patrick Gelsinger.

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