Intel unveils new AI chips as it seeks to reclaim market share from Nvidia and AMD

Intel announced new AI chips for data centers on Tuesday, aiming to compete with rivals Nvidia and AMD, who have recently unveiled their own offerings.

Intel’s Xeon 6 processor will outperform its predecessor in terms of performance and power efficiency for high-intensity data center workloads, according to CEO Pat Gelsinger at Taiwan’s Computex technology conference.

The announcement comes as rivals Nvidia and AMD launch new AI chips on Sunday and Monday, respectively, in a bid for leadership in the thriving industry.

It also comes six months after Intel introduced its 5th Generation Intel Xeon processors for data center workloads and two months after announcing the Gaudi 3 processor for AI model training and deployment.

On Tuesday, Intel also revealed that the Gaudi 2 and Gaudi 3 AI accelerators are less expensive than rival chips.

“Customers want high-performance, low-cost gen AI training and inference solutions.” And they’ve begun to look to alternatives such as Gaudi. They want choices. Gelsinger stated that they want open software and hardware solutions, as well as time-to-market solutions with significantly lower TCOs [total cost of ownership].

Intel also revealed architecture details for its upcoming Lunar Lake processors in order “to continue to grow the AI PC category.” The Lunar Lake chips, which are set to ship in the third quarter, will compete with Nvidia and AMD chips designed specifically for AI PCs.

Intel is attempting to catch up with Nvidia and AMD after largely remaining on the sidelines of the AI frenzy, which saw tech titans such as Meta, Microsoft, and Google purchase as many Nvidia chips as possible.

Every year, Nvidia and AMD outline roadmaps for new data center chips. Nvidia unveiled new “Rubin” chips on Sunday, succeeding the previously announced “Blackwell” model from March. AMD has detailed timelines for new Instinct accelerators every year until 2026.

Unlike Nvidia and AMD, Intel designs and manufactures its own chips. However, its foundry business has struggled, with a larger operating loss of $7 billion in 2023 compared to the previous year.

It also lost its lead in chip manufacturing to foreign competitors such as Taiwan Semiconductor Manufacturing Company. However, nearly $20 billion in CHIPS and Science Act funding from the Biden administration could help Intel advance its semiconductor manufacturing and R&D.