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Business

Intel Unveils Gaudi 3 AI Chip to Compete with Nvidia

Intel has revealed its latest artificial intelligence chip, Gaudi 3, as it competes with Nvidia for market share in the AI chip industry. The new chip is designed to efficiently train and deploy big AI models, such as OpenAI’s ChatGPT. Intel claims that Gaudi 3 is over twice as power-efficient and runs AI models one-and-a-half times faster than Nvidia’s H100 GPU. It is available in different configurations, including a bundle of eight chips on one motherboard or a card for existing systems.

Intel tested the chip on models like Meta’s Llama and the Falcon, backed by Abu Dhabi. The company asserts that Gaudi 3 can aid in training or deploying models, including Stable Diffusion or OpenAI’s Whisper model for speech recognition. Additionally, Intel emphasizes that its chips consume less power than Nvidia’s, positioning them as a more energy-efficient option.

With Nvidia currently dominating 80% of the AI chip market with its GPUs, Intel’s new offering aims to challenge this supremacy. The Gaudi 3 chips are set to be available to customers in the third quarter, with companies like Dell, HP, and Supermicro already planning to integrate them into their systems. Intel anticipates strong competition with Nvidia’s latest chips, highlighting its competitive pricing and distinctive open integrated network on chip.

As the data center AI market continues to expand, there is potential for other competitors to thrive alongside Nvidia. The increasing demand for AI software infrastructure from cloud providers and businesses suggests a growing market for AI chips. Moreover, the cost implications of running generative AI and purchasing Nvidia GPUs have prompted companies to seek alternative suppliers to mitigate expenses.

Notably, the AI boom has significantly boosted Nvidia’s stock, with a more than threefold increase over the past year. In contrast, Intel’s stock has seen a more modest 18% rise during the same period. As the competition in the AI chip industry intensifies, the unveiling of Intel’s Gaudi 3 chip marks a significant development in the battle for market dominance.

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