Intel Enters the AI Competition

By Gustavo Nils Dec26,2023


Intel Corp. joined the competition of AI chip manufacturing among its peers (Nvidia and AMD), by introducing last week its brand-new Gaudi 3, a chip for generative AI software which will be launched in 2024. In fact, the company has been working on developing Gaudi chips after acquiring chip developer Habana Labs in 2019. According to the officials, Gaudi 3 works two times faster networking performance, 1.5x higher bandwidth compared to Gaudi 2, and four times higher than BF16 (a new floating-point format that can accelerate machine learning algorithms) performance.

With a hold of strong belief that the AI PC will be the star of the show for the upcoming year, Intel CEO Pat Gelsinger also introduced Core Ultra chips designed for Windows laptops and PCs, as well as the fifth generation Xeon server chips – both include neural processing unit (NPU), a specialized part for running AI programs at a faster rate.

The introduction of Core Ultra Chips signaled the company’s largest architectural shift in 40 years, with innovation on all fronts: CPU compute, power, battery life, graphics, and profound new AI features. Moreover, Intel’s partnership with over 100 software vendors in bringing several hundred AI-boosted applications to the PC market (which creates a better user experience) has inevitably a competitive advantage for the company in the market.

On the other hand, the new Xeon processor is said to be delivering up to 42% higher inference and fine-tuning on models as large as 20 billion parameters. Compared with its predecessors, the 5th generation Xeon hit 21% average performance gain for general compute performance and 36% average performance per watt across a range of customer workloads, eventually lowering total cost of ownership up to 77%.


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