Intel Unveils New Processors to Strengthen Its Position in the AI Market

Intel Corp. (INTC) is making a calculated and strategic move to strengthen its foothold in the AI market. In a bid to outpace industry rivals like NVIDIA Corp. (NVDA) and Advanced Micro Devices Inc. (AMD), Intel unveils new processors that have the potential to reshape the Artificial Intelligence (AI) industry. At a highly-anticipated launch event in New York, Intel presented two key offerings: Gaudi3, an AI chip tailored for generative AI software, and the revolutionary Core Ultra processors.

Related: Intel’s Brand New Core Ultra Revolutionising AI-Powered Computing

Pioneering AI Capabilities with Gaudi3

The star of the show, Gaudi3, is poised to launch next year, entering the competitive arena against NVIDIA’s H100 and AMD’s upcoming MI300X. Intel began developing the Gaudi series in 2019 after acquiring chip developer Habana Labs. This latest iteration, Gaudi3, specifically targets AI models known for their hunger for computational power. Intel’s CEO, Pat Gelsinger, expressed his excitement at the launch event, stating, “We believe the AI PC will be the star of the show for the upcoming year.”

Making A Quantum Leap in AI Computing with Core Ultra

Intel also introduced the Core Ultra processors to mark an architectural shift after four decades of innovation. These processors promise to usher in a new era for AI-powered PCs and applications, with advancements spanning CPU computing, graphics, power efficiency, and battery life. Intel’s projection suggests that AI PCs will command an impressive 80% of the market by 2028. As Intel unveils new processors, the Core Ultra series is expected to redefine the standards of performance and efficiency.

Intel unveils new processors, and among the exciting developments is the Core Ultra. This processor features Intel’s first client on-chip AI accelerator, the Neural Processing Unit (NPU). The NPU is a cutting-edge processor that can achieve an impressive 2.5 times better power efficiency for AI acceleration than its predecessor. Intel intends to collaborate with over 100 software vendors to introduce a diverse range of AI-boosted applications to the PC market and give users more creative, productive, and enjoyable experiences.

As Intel unveils new processors, the Core Ultra-based AI PCs have already hit the shelves of select U.S. retailers, just in time for the holiday season. Intel plans global expansion, with over 230 designs set to launch worldwide in the coming year. The company has unveiled the 5th Gen Intel Xeon processor family. This processor boasts better performance and efficiency across data centres, cloud computing, network infrastructure, and edge computing.

Also Read: The Latest Intel Application Optimisation Enhances Gaming Experience on the Intel 14th Gen Chips

5th Gen Xeon: Transformative Performance and Efficiency

As Intel unveils new processors, it highlights advancements in performance with the upcoming 5th Gen Xeon processors. Compared to the previous generation, the 5th Gen Xeon processors showcase a remarkable 21% average performance gain for general computing. This equates to a 36% higher average performance per watt across a spectrum of customer workloads. Opting for the 5th Gen Xeon can result in a remarkable 77% reduction in Total Cost of Ownership (TCO) for customers following a typical five-year refresh cycle.

Intel claims that Xeon is the only mainstream data centre processor equipped with built-in AI acceleration. The 5th Gen Xeon delivers up to a 42% higher inference and fine-tuning on models with parameters as large as 20 billion. Intel emphasises that it is the only CPU with a consistent and continually improving set of MLPerf training and inference benchmark results.

During the launch event, IBM made noteworthy announcements about the 5th Gen Intel Xeon processors. Intel unveils new processors that achieved up to a 2.7x better query throughput on IBM’s Watsonx.data platform compared to the previous-generation Xeon processors during testing. Further endorsements came from Google Cloud, which is set to deploy 5th Gen Xeon next year, highlighting a 2x performance boost in threat detection deep learning models for Palo Alto Networks through built-in acceleration in 4th Gen Xeon via Google Cloud.

Read More: Meteor Lake: Upcoming Intel Mobile Processors Features New ‘Tile’ Based Architecture 

Intel’s Innovations in Action

Furthermore, indie game studio Gallium Studios shared its positive experience using Numenta’s AI platform running on Xeon processors. The studio reported a substantial 6.5x improvement in inference performance over a GPU-based cloud instance, resulting in cost savings and reduced latency for its AI-based game, Proxi11.

Concluding the event, CEO Pat Gelsinger shared an enticing update on the upcoming Intel Gaudi 3, set to debut next year. Intel unveiled new processors for the first time, and Gelsinger showcased the next-generation AI accelerator designed for deep learning and creating large-scale generative AI models. The rapid expansion of Intel’s Gaudi pipeline is attributed to its proven performance advantages and competitive Total Cost of Ownership (TCO) pricing.

Intel’s Strategic Positioning and Market Dynamics

Intel’s unveiling of new processors follows closely on the heels of a similar event by AMD, where the company introduced its latest AI chip. The market response was reflected in an increase in AMD’s shares. The AI-centric event positions Intel as a frontrunner poised to capitalise on the surging demand for AI tools and applications, much like NVIDIA and AMD.

You can read more on NVIDIA and its contribution to the AI market here.

“AI is an emerging opportunity” for Intel, as the company “Is making good progress in leading-edge foundry business, which offers significant long-term upside potential,” as noted by Raymond James analysts. Intel’s foundry business reported a staggering 299% increase in revenue in the third quarter of 2023 compared to the same period last year, a testament to the recovering PC market and the growing demand for cutting-edge computing solutions.

While Intel has not disclosed all its foundry customers, industry analysts anticipate that NVIDIA might be part of the mix, adding an intriguing layer to the evolving dynamics of the semiconductor industry. Intel shares gained 1.2% ahead of the event, contributing to a more than 66% increase year-to-date, underlining the positive sentiment in the market regarding Intel’s trajectory. In parallel, Intel unveils new processors to strengthen its position in the semiconductor space.

Also Read: VMware Collaborates with Intel to Unlock Private AI Everywhere

Closing the Loop: The Quantum Leap Into an AI-Driven Future

Intel unveils new processors as Gaudi3 and Core Ultra take centre stage, and the company’s vision for an AI-dominated future is unfolding. With an impressive array of processors catering to both AI enthusiasts and enterprise clients, Intel is shaping the landscape of AI-powered computing.

The positive industry response, strategic partnerships with major players, and ambitious global expansion plans emphasise Intel’s commitment to leading the charge in the AI revolution. As Intel unveils new processors, the future of AI-powered computing looks promising as the company spearheads the development of powerful, efficient, and versatile processors.

Today, AI is rapidly becoming integral to diverse applications, from gaming to data centre operations. Intel’s quantum leap is a leap in technology that will most likely secure its role as a pioneer in the AI frontier. The unveiling of Gaudi3 and Core Ultra processors marks a defining moment for Intel, setting the stage for a future where AI is not just a feature but a driving force behind computing innovation.

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