Intel (INTC) has announced a new microchip for generative artificial intelligence (A.I.) software that is aimed at competing directly against rivals Nvidia (NVDA) and Advanced Micro Devices (AMD).
Intel’s new Gaudi3 chip will be able to run big A.I. models that use a lot of energy and are currently driven largely by chips from Nvidia, which has a 70% global market share.
The most popular A.I. models, such as ChatGPT, currently run on Nvidia GPUs in the cloud. The Gaudi3 chip is meant to challenge Nvidia’s H100 chip as well as AMD’s MI300X chip used in A.I.
Intel said that the Gaudi3 chip will start shipping to customers in 2024, though the company did not specify an exact date.
Additionally, Intel announced new Core Ultra chips designed for Windows laptops and personal computers (PCs), and new fifth-generation Xeon server microchips.
Both of those new chips include a specialized A.I. part called an NPU that can be used to run artificial intelligence programs faster.
The new Core Ultra chips also have more powerful gaming capabilities and can power creative software programs from companies such as Adobe (ADBE), running them 40% faster.
The fifth-generation Xeon processors will power servers deployed by large organizations such as cloud computing companies.
Intel’s stock has increased 69% in 2023 and currently trades at $45.18 U.S. per share.
