Intel Corp. joined the competition of AI chip manufacturing among its peers (Nvidia and AMD), by introducing last week its brand-new Gaudi 3, a chip for generative AI software which will be launched in 2024. In fact, the company has been working on developing Gaudi chips after acquiring chip developer Habana Labs in 2019. According to the officials, Gaudi 3 works two times faster networking performance, 1.5x higher bandwidth compared to Gaudi 2, and four times higher than BF16 (a new floating-point format that can accelerate machine learning algorithms) performance.
With a hold of strong belief that the AI PC will be the star of the show for the upcoming year, Intel CEO Pat Gelsinger also introduced Core Ultra chips designed for Windows laptops and PCs, as well as the fifth generation Xeon server chips – both include neural processing unit (NPU), a specialized part for running AI programs at faster rate.
The introduction of Core Ultra Chips signaled the company’s largest architectural shift in 40 years, with innovation on all fronts: CPU compute, power, battery life, graphics, and profound new AI features. Moreover, Intel’s partnership with over 100 software vendors in bringing several hundred AI-boosted applications to the PC market (which creates a better user experience) has inevitably a competitive advantage for the company in the market.
On the other hand, the new Xeon processor is said to be delivering up to 42% higher inference and fine tuning on models as large as 20 billion parameters. Compared with its predecessors, the 5th generation Xeon hit 21% average performance gain for general compute performance and 36% average performance per watt across a range of customer workloads, eventually lowering total cost of ownership up to 77%.
#Intel, Weekly: The company share price has been traded in an ascending channel until it broke the top line in November. As of its close last week, the asset is testing $46.60, a FR 50.0% extended from the high in April 2021 to the low in October 2022. A successful break above this level may also indicate a shift in trend direction, with next resistance to focus at $51.80 and $59. On the contrary, a false break is validated if price retraces back to the channel, with $41.50 (FR 38.2%) serves as the nearest support, followed by $35 (FR 23.6%).
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In recent years, the race to develop advanced artificial intelligence (AI) technology has intensified with major tech giants vying for the top spot. However, in a significant turn of events, Intel has emerged as the frontrunner in this competitive arena. The multinational corporation has made a game-changing move in the AI landscape, positioning itself as a key player in the future of this revolutionary technology. Let’s delve into the specifics of this development and understand why it is making headlines in the tech world.
Understanding the AI Race
Before we dive into Intel’s move, it’s important to first understand the significance of the AI race. Artificial intelligence refers to the simulation of human intelligence processes by machines, particularly computer systems. AI technology has the potential to transform various industries, including finance, healthcare, transportation, and retail, by automating processes, enhancing decision-making, and enabling more efficient operations.
The global AI market is projected to reach a whopping $197.5 billion by 2025, with the North American market accounting for the largest share. Given this potential, it’s no surprise that tech giants are investing heavily in AI research and development. Companies like Google, Amazon, and Microsoft have been at the forefront of this race, constantly pushing boundaries and innovating to gain a competitive edge. However, Intel’s recent move has shaken up the playing field and established the corporation as a major frontrunner in the AI market.
Intel’s Game-Changing Move
So, what exactly is the move that has put Intel at the forefront of the AI race? In July 2020, the company announced its acquisition of Israeli AI chipmaker Habana Labs for a whopping $2 billion. This strategic purchase enables Intel to enhance its AI chip capabilities and gain a significant share of the AI hardware market.
Habana Labs is known for its cutting-edge AI processor technology, called Gaudi. These processors are specifically designed for training deep learning models, making them ideal for AI applications in data-intensive industries like finance and healthcare. With this acquisition, Intel now has access to this high-performance AI chip technology, strengthening its position in the AI hardware market.
But the significance of this move goes beyond just the acquisition of advanced AI chips. It also helps Intel diversify its portfolio and reduce its reliance on the traditional PC market, which has seen a decline in recent years. This acquisition signifies Intel’s strong commitment to the future of AI and positions the company as a major player in this rapidly growing market.
Implications for the AI Landscape
Intel’s move has significant implications for the AI landscape, paving the way for new opportunities and innovations. Here are some key implications to consider:
1. Enhanced Capabilities: With access to Habana Labs’ advanced AI chips, Intel can significantly enhance its AI capabilities and offer more robust solutions to its customers. This also allows the company to stay competitive with other major players in the industry.
2. Increased Market Share: The acquisition of Habana Labs gives Intel a significant share of the AI hardware market. This positions the company to become a key player in this space and potentially surpass competitors like NVIDIA and AMD.
3. A Shift in Focus: The move to acquire Habana Labs also signals a shift in Intel’s focus towards AI and other emerging technologies. This could potentially open up new revenue streams for the company and reduce its dependence on the declining PC market.
4. Collaboration and Innovation: With Intel’s resources and expertise combined with Habana Labs’ AI chip technology, we can expect to see increased collaboration and innovation in the AI landscape. This could lead to the development of more advanced and efficient AI solutions.
It’s safe to say that Intel’s move to acquire Habana Labs has shaken up the AI market, positioning the company as a major player in the race. This game-changing move not only enables Intel to enhance its capabilities and market share, but also signals its commitment to the future of AI and emerging technologies. As we continue to see advancements in the AI landscape, it will be interesting to see how tech giants like Intel will continue to evolve and drive innovation in this space.
If you’re a business owner or aspiring entrepreneur, it’s crucial to keep an eye on developments like this in the AI market. Embracing AI technology can provide significant benefits, such as automating processes, improving decision-making, and boosting efficiency. Stay informed and explore ways to integrate AI into your business to stay ahead of the game in this fast-paced race towards the future of technology.