Intel unveiled its latest artificial intelligence chip, the Gaudi 3, as chipmakers compete to produce semiconductors that can efficiently train and deploy big AI models. The Gaudi 3 chip boasts improvements in power efficiency and speed compared to Nvidia’s H100 GPU, making it an attractive option for AI builders. It comes in different configurations and has been tested on models like Meta’s Llama and Falcon. The chip is set to be available in the third quarter, and Intel is partnering with companies like Dell and Hewlett Packard Enterprise to build systems with the new chips.
Nvidia currently dominates the AI chip market with its GPUs, but Intel aims to challenge its position with the Gaudi 3 chip. The data center AI market is expected to grow as cloud providers and businesses invest in AI software infrastructure, creating an opportunity for other competitors like Intel and AMD. Intel’s focus on providing competitive pricing and open integrated network solutions sets it apart from Nvidia, and the company believes it has a strong offering with the Gaudi 3 chip. With the AI boom driving demand for efficient chips, companies are looking for ways to bring costs down while running generative AI models.
AMD is also looking to expand its presence in the AI chip market with the MI300X data center GPU, which has already attracted customers like Meta and Microsoft. Nvidia, on the other hand, has announced new GPUs like the B100 and B200, expected to ship later this year. These new chips promise performance gains and build on Nvidia’s success with its proprietary CUDA software, which enables AI scientists to utilize all the hardware features in the GPU. In contrast, Intel is focusing on building open reference software and collaborating with other chip and software giants to create a more flexible and non-proprietary ecosystem for AI applications.
Intel’s Gaudi 3 chip is built on a five nanometer process, indicating that the company is likely using an outside foundry to manufacture the chips. CEO Patrick Gelsinger has announced plans to manufacture AI chips, potentially for outside companies, at a new Ohio factory set to open in 2027 or 2028. This move signifies Intel’s commitment to expanding its AI chip production capabilities and staying competitive in the rapidly growing market. By leveraging its partnerships and focusing on open software solutions, Intel aims to establish itself as a key player in the AI chip industry, challenging Nvidia’s dominance and offering customers more options for powering their AI applications.
