Intel is collaborating with tech giants to create open-source software rivaling Nvidia's dominance
From Nasdaq: 2024-03-27 06:00:00
Nvidia (NASDAQ: NVDA) has maintained dominance in the AI chip market with its CUDA software library, developed in 2006. A group of tech leaders, including Intel (NASDAQ: INTC), has formed the Unified Acceleration Foundation (UXL) to create an open-source software that could challenge Nvidia’s near-monopoly. UXL aims to have a CUDA disruptor by 2025, potentially impacting Nvidia’s market share and margins. Investors should monitor UXL’s progress closely throughout 2024.
The UXL consortium, led by Intel, aims to develop an open-source software stack that would work with any AI chipset, benefiting both challenger companies like Intel and cloud platforms like Alphabet. UXL plans to release a CUDA rival by the end of the year, after years of specification development, led by a diverse group of tech giants such as Samsung, Qualcomm, and Fujitsu.
The UXL initiative, an extension of Intel’s OneAPI, seeks to democratize AI chip programming and create a unified software language for GPUs, CPUs, and other accelerators. Although Nvidia holds a 17-year lead in AI chip programming with CUDA, UXL’s collaborative effort could potentially challenge Nvidia’s dominance and lead to a more competitive market by late 2024, impacting Nvidia’s market share and margins. Investors should keep an eye on UXL’s progress in 2024 as it may affect Nvidia’s valuation.
Investors looking to purchase Intel (NASDAQ: INTC) stock should consider the potential impact of the UXL consortium’s efforts on the AI chip market, which could challenge Nvidia’s dominance. While Intel, a member of the consortium, has not been identified as one of the top stock picks by The Motley Fool Stock Advisor team, monitoring the progress of UXL throughout 2024 could provide insights for potential investors. Stock Advisor offers guidance on building a portfolio, regular updates, and new stock picks each month for investors seeking potentially high returns in the coming years.
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