Intel Unveils Gaudi 3 AI Chip to Challenge Nvidia in Growing Market

Intel is gearing up to challenge Nvidia in the thriving AI chip market with its latest offering, the Gaudi 3 processor. Set to hit the shelves in the third quarter, this updated chip promises enhanced performance for training AI systems and executing finalized software.

CEO Pat Gelsinger expressed confidence in Intel’s ability to provide a competitive alternative to Nvidia, emphasizing the need for more suppliers in the industry. Despite earlier setbacks, Intel aims for a significant market impact with the Gaudi 3.

The announcement had a modest effect on Intel’s shares, which saw a slight increase. Gelsinger hinted that the pricing of their chips would be considerably lower than Nvidia’s, offering excellent value in total cost of ownership.

However, Nvidia’s dominance in the market poses a significant challenge. Their H100 accelerator has been a resounding success, propelling the company’s revenue and market valuation. Nvidia is further solidifying its position with the upcoming Blackwell chip platform.

Intel asserts that the Gaudi 3 will outperform Nvidia’s H100 in terms of speed and power efficiency, though direct comparisons with Nvidia’s Blackwell line are pending release. Competitor AMD is also making strides in the field with its MI300 accelerator lineup.

Gelsinger envisions AI as a lucrative opportunity beyond data centres, foreseeing its integration into various devices. Intel’s bullish outlook is supported by projections indicating substantial growth in the AI hardware market.