Intel has launched two new AI chips, the Xeon 6 CPU and the Gaudi 3 AI accelerator, in an effort to boost its data center business and compete with AMD and Nvidia. The statement comes as speculations circulate about Qualcomm, a significant player in the smartphone chip market that is looking to expand into data centers and personal computers. According to Yahoo Finance, Intel’s new processors aim to strengthen its position in the AI area by improving performance and energy efficiency.
The Xeon 6 CPU, which is built for high-performance computing and artificial intelligence (AI) applications, promises to be twice as fast as its predecessor, making it perfect for cloud computing and edge systems. Intel says that this CPU provides higher power for AI workloads and is well-suited to AI-based data centers. Meanwhile, the Gaudi 3 chip, designed exclusively for generative AI applications, is expected to compete with Nvidia’s H100 and AMD’s MI300X CPUs. One of Intel’s biggest partners, IBM, intends to include the Gaudi 3 into its cloud service, providing clients with a more cost-effective AI solution.
Despite these gains, Intel still faces significant competition. Nvidia’s stock has risen 142% this year owing to strong demand for its AI processors, while Intel’s stock has fallen 52%. AMD has also experienced a 12% rise, putting more pressure on Intel. Intel’s most recent quarterly results report showed poor revenue and profit data, prompting the corporation to slash its staff by 15% and postpone dividend payments. Intel CEO Pat Gelsinger is trying hard to regain the company’s former prominence by pushing for more sophisticated chip research and increasing production capacities, albeit some of his plans, such as new chip operations in Europe and Malaysia, have been pushed back owing to dwindling chip demand.
Furthermore, Intel made news by signing agreements with IT behemoths such as Amazon and Microsoft to develop bespoke chips, a move toward extending its third-party chip manufacturing operations. Intel announced the separation of its chip foundry sector from its design business in order to focus more on its production capabilities. This split is intended to reassure potential customers that Intel’s design group will not have access to competitors’ secret chip designs.
Meanwhile, Qualcomm’s anticipated takeover of Intel is causing excitement. Qualcomm, which has depended mainly on smartphone semiconductors, is now looking into growth potential in the data center and PC industries. However, many believe that such a takeover would be impossible due to Intel’s massive size and present financial difficulties. Qualcomm would have to overcome major obstacles to compete in Intel’s key markets, notably PCs, where Intel has a strong position. Despite Qualcomm’s desire to challenge Intel’s PC chip supremacy, analysts believe it will take a long time for Qualcomm to eat into Intel’s market share.
The original article was written by Daniel Howley and published by Yahoo Finance on September 24, 2024. You can check out the full article here.
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