Intel (INTC) on Tuesday debuted a new AI chip designed to take on one of Nvidia's (NVDA) most popular AI processors as part of its Intel Vision event.
The company's Gaudi 3 chip matches and excels Nvidia H100 AI processor When it comes to training and deploying generative AI models. The H100 is one of Nvidia's most popular chips, powering AI applications for some of the world's biggest tech companies, from Microsoft to Google.
According to Intel, the Gaudi 3 is 40% more power efficient with 50% faster inference than Nvidia's H100. Training refers to the time it takes to train a basic AI model such as OpenAI's GPT-3, while inference is the process of actually using the models for applications.
Intel says Gaudi 3 is up to 1.7 times faster when training large, popular language models compared to the H100. Intel even says its chip is 1.3 times faster than Nvidia's larger H200 chip when it comes to inferring certain language models.
In addition to its Gaudi line of chips and Xeon CPUs, Intel is also marketing so-called AI-powered computers, which are computers equipped with neural processing units that can handle on-board AI tasks.
These AI maneuvers come at a critical time for Intel.
The company is reinventing itself as a leader in cutting-edge chip technology while building its chip manufacturing capabilities in the United States and abroad. This includes a foundry company that will build Intel's own chips as well as those for third-party customers. Company It has already been confirmed It will build chips for Microsoft.
But this reinvention comes at a hefty cost, as Intel announced earlier this month a Operating losses of $7 billion for 2023 As part of the new financial reporting structure. Intel stock is down 25% so far this year. Conversely, shares of competitors Nvidia and AMD (AMD) are up 15% and 74% so far this year, respectively.
Intel has been teasing a Gaudi 3 chip for some time, with CEO Pat Gelsinger showing off a version of the platform during a press event in December. It's seen as Intel's best chance yet to compete with Nvidia in the artificial intelligence market, a space the graphics chip giant dominates thanks to its powerful hardware and software.
The company's new chips also come just one month after Nvidia debuted its next-generation AI platform called Blackwell. This system includes Nvidia's B200 AI chip, which consists of two Blackwell chips integrated together to work as a single processor.
Intel is pitching its AI systems as an alternative to Nvidia's offerings, claiming an open source approach that allows customers to use the services and software they want.
Although Nvidia is the leader in overall AI technology, Intel is betting that companies will remain wary of committing to a single source for high-value needs like AI hardware.
For example, hyperscalers like Microsoft (MSFT), Google (GOOG, GOOGL), Amazon (AMZN), Meta (META), and others already offer or are developing their own AI chips in addition to using Nvidia chips.
Intel's Gaudi 3 will provide these expanders with another option in the chip market.
Intel also on Tuesday announced a new form of Ethernet connectivity for the Gaudi 3 nodes, competing with Nvidia's InfiniBand connectivity technology to ensure uninterrupted communications and processing. The company also launched for the first time its Xeon 6 processors for use in artificial intelligence systems.
Taking a page from Nvidia's book, Intel is offering the entire setup as a reference design that partners like Dell, HP, Lenovo, and Super Micro can use to build their own server cabinets.
Intel says customers will be able to order Gaudi 3 systems in sizes ranging from single nodes and small boxes to massive clusters that can fill entire data centers.
Email Daniel Howley at [email protected]. Follow him on Twitter at @Daniel Holly.
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