Intel Unveils New A.I. Microchip

Intel (INTC) has unveiled a new artificial intelligence (A.I.) microchip called the “Gaudi 3” that the company says can be used to train and deploy big A.I. models and chatbots.

In launching the Gaudi 3 chip, Intel said that it is over twice as power-efficient and one-and-a-half times faster than Nvidia’s (NVDA) competing H100 microchip that is widely used with A.I.

Nvidia currently holds an estimated 80% share of the A.I. chip market with its graphics processors, known as GPUs, that are the gold standard for running A.I. applications.

Intel and other chipmakers are trying to break Nvidia’s grip on the market for A.I. microchips and semiconductors.

Intel said that the new Gaudi 3 chips would be available to customers in the third quarter of this year, though it didn’t provide a price range for the new chip.

In announcing the Gaudi 3 chip, Intel said that it comes in different configurations like a bundle of eight chips on one motherboard or a card that can fit into existing systems.

The Gaudi 3 chip is also built through a five-nanometer process, a relatively recent manufacturing technique.

In addition to designing the Gaudi 3, Intel plans to eventually manufacture the A.I. chip itself at a new Ohio factory expected to open by 2028.

Nvidia isn’t taking the challenge from Intel and others lying down. In March of this year, the chipmaker revealed new B100 and B200 GPUs, which are the successors to its H100 chip and provide more power.

Nvidia’s newest A.I. microchips are expected to start shipping to customers later this year.

Intel’s stock has gained 18% over the past year and currently trades at $38.33 U.S. per share.

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