Intel (NASDAQ: intc) 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. Since Gaudi is not a GPU, architecture is very different from the currently dominated 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.
Intel’s AI Accelerator roadmap has been scattered for a long time. Until last week, the plan was to launch the Falcon Concouses in late 2025. Falcon Conqueror is a more traditional GPU that was expected to incorporate some features from 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.
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