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Intel Unveils Latest AI Chip to Challenge Nvidia’s Dominance

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Intel has unveiled its latest artificial intelligence chip, the Gaudi 3, to wrestle market share from industry leader Nvidia. This latest offering from the semiconductor giant promises to shake up the competitive landscape of the AI chip market.

CNBC reports that Intel claims the Gaudi 3 chip is over twice as power-efficient and can run AI models one-and-a-half times faster than Nvidia’s H100 GPU. Equipped with different configurations, including a bundle of eight Gaudi 3 chips on a single motherboard, Intel is positioning the new chip as a compelling alternative for companies looking to deploy large-scale AI models like OpenAI’s ChatGPT.

ALSO READ: Nvidia’s Blackwell Architecture Sparks a New Era in AI Processing Power

“We do expect it to be highly competitive with Nvidia’s latest chips,” said Das Kamhout, vice president of Xeon software at Intel, in an interview with CNBC. The company is also touting the Gaudi 3’s use of industry-standard Ethernet and open integrated network-on-chip as key differentiators.

The move comes as Nvidia, which currently commands an estimated 80% share of the AI chip market, continues to dominate the space with its powerful GPU offerings. However, the growing demand for AI infrastructure presents opportunities for other players like Intel and AMD to gain ground.

Running generative AI and buying Nvidia GPUs can be expensive, and companies are looking for additional suppliers to help bring costs down, a trend that could benefit Intel’s Gaudi 3.

With the Gaudi 3 slated for availability in the third quarter of this year, Intel is poised to intensify the competition in the AI chip space. This battle for AI supremacy could have far-reaching implications for the broader technology landscape.

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