Intel’s Secret Weapon in the AI Wars: Low Prices

From Nasdaq.: 2024-06-05 06:40:00

Nvidia dominates the AI accelerator market with a market share estimated at over 90%. Intel will launch its Gaudi 3 AI accelerators later this year, with a backlog of about $2 billion related to AI chips. Intel’s strategy aims to offer cost savings compared to Nvidia’s solutions while working on standardizing an alternative platform.

Intel’s aggressive pricing for Gaudi 3 AI accelerators aims to undercut Nvidia while delivering impressive performance. The company expects these chips to train AI models up to 40% faster than Nvidia’s H100 chips. Intel also claims Gaudi 3 offers up to twice the AI inferencing performance of the H100.

Nvidia will introduce Blackwell GPUs in 2025, succeeding the H100 and providing significant performance and efficiency improvements. Intel’s Gaudi 3 chips are expected to gain market share with their cost-effective pricing strategy next year. While Nvidia will likely continue dominating the market, Intel could see significant growth if its pricing resonates with customers.



Read more at Nasdaq.: Intel’s Secret Weapon in the AI Wars: Low Prices