Intel (Intc -1.06 %) Most failed to utilize the rapid demand for artificial intelligence (AI) accelerators. The company, which acquired the AI Chip Startup Havanarabo in 2019, three years before the AI boom began in earnest, seemed to be a foresight movement. Habana’s Gaudi Family of ACCELERATORS was adjusted to the AI workload compared to the general -purpose GPU, so it had all the big winners.
Intel is currently in the third generation of the Gaudi AI chip. The progress was so slow that it was unbearable. Last year, the company set a goal of selling AI accelerators worth $ 500 million. This is the ultimately missing goal. NVIDIA, on the other hand, stirs hundreds of billions of dollars with AI chips in each quarter, and AMD guides about $ 5 billion in 2024 AI chip sales.
One of the major problems of Intel is software. Gaudi is not a GPU, so architectures are very different from the current market AI accelerator. Despite the aggressive price setting from Intel, the immature software ecosystem suppresses GAUDI. Intel has won several victories, including a contract to place Gaudi 3 chips in the IBM and IBM cloud data centers. Unfortunately for Intel, these victorys are not really large enough to move the needle.
Shake the roadmap
Intel’s AI Accelerator roadmap has been scattered for a long time. Until last week, the plan was to launch the Falcon Constire in late 2025. The Falcon Conqueror is a more traditional GPU that was expected to incorporate some features from the Gaudi Family chips. Switching to the Gaudi CHIP family planned and completely new architecture may have been a factor in keeping the potential GAUDI customers away.
In the fourth quarter revenue call held on Thursday, Intel revealed that the Falcon Conqueror was discarded as a commercial product. The new plan is to use the Falcon Conqueror as an internal test chip because it focuses on rack -level AI solutions built around the Jaguar Shears, which was considered to be the successor to the Falcon Consociors.
This effectively indicates the end of Intel’s efforts to become a major supplier in the AI Axela Letter tip. Instead, the company has a wider AI solution for data centers. Jaguar Shores can be combined with the company’s Xeon Server CPU and other Intel technology, which is certainly a reasonable strategy, given that it is difficult for Intel to sell Gaudi chips.
“Falcon Conqueror is useful for the process of working on systems, networking memory, and all component functions, but what customers really want is the full-scale rack solution. Holthaus said.
There is no AI cam back in 2025
Jaguar SHORES is scheduled to be released somewhere in 2026, and the fact that Intel focuses on the standalone AI accelerator may further reduce the interest in the Gaudi family’s chips. 2024 was a disappointing year for Intel’s AI business, and 2025 did not look so good.
In the long term, the new focus on the AI system instead of the Intel AI chip may be the best way for the company to eventually enter the data center AI market. Gaudi certainly had the potential, but the company has learned the opportunity to become a major player in the AI accelerator market.
Intel can still turn itself, but AI chips are not factors. Instead, the company needs to carry the Foundry Business and the future PC and server CPU to carry on the finish line.
Timothy Green has a job in Intel and international business machines. Motley Fool has advanced microdovies, Intel, international business machines, and NVIDIA. Motley Fool recommends the following options: A $ 27 phone call in Intel in February 2025. Motley fools have a disclosure policy.
