Intel doesn’t have, nor does it plan to, introduce any kind of chip that could match the performance of what its fiercest competitors, such as NVIDIA, offer for training AI models, according to comments that Intel CEO Pat Gelsinger had reportedly made during a financial conference in August. News of Gelsinger’s statement comes as Intel continues to market Gaudi 3, a cost-efficient AI accelerator that the company launched in September with what is said to be 20% more throughput and 2x price/performance vs. NVIDIA’s H100 GPU for inference of LLaMa 2 70B. Intel also confirmed this week that it would be laying off over 2,000 employees across four states as part of its wider plan in cutting 15,000 jobs: 1,300 employees in Oregon, 385 in Arizona, 319 in California, and 251 in Texas.
At a financial conference in August, Gelsinger admitted that the company isn’t going to be “competing anytime soon for high-end training” because its competitors are “so far ahead,” so it’s betting on AI deployments with enterprises and at the edge. Intel said its strategy for Gaudi 3 accelerator chips will not focus on chasing the market for training massive AI models that has created seemingly unceasing demand for Nvidia’s GPUs…


Discussion (7 replies)
Join Discussion →Sounds like Intel needs to get it's core engineers focused on doing what they can do well and let the rest of the fluff go for a few generations as they prove themselves and come out swinging. Much love for AMD right now but Nvidia could by them both and STILL see record growth... we need these companies to compete and keep the market on it's toes.
The sooner we see the AI market crash and burn the better for everyone involved. AI is not a moneymaker it is a giant hype balloon.
Hmm... so does this mean their GPU division is getting canned?
I mean, the only reason they really started it was to chase the mining dollars, and then I figured they kept it around to chase the AI stuff after that. The dGPU market for gamers alone just isn't that big to chase relative to the investment you need to be competitive.
not competing in high end does not mean you can't compete (or try to) in low or mid. If they can sell at good price/performance they can still make tons of money.
This is true. But it’s usually the R&D from developing the high end that goes into making the lower tiers
I thought Battlemage was supposed to be a great mid tier contender.
So, no innovation, no competition.. The new american way, just ask for billions in grants!.