Gaudi3: Intel's Next Move in the AI Chip Race Against Nvidia and AMD

Intel revealed its latest lineup of computer chips, featuring the much-anticipated Gaudi3—an artificial intelligence (AI) chip designed specifically for generative AI software.

Scheduled for launch next year, Gaudi3 is set to enter the competitive arena, challenging rival chips from industry giants Nvidia and AMD that currently power resource-intensive AI models.

The premier AI models, such as OpenAI's widely-used ChatGPT, heavily rely on Nvidia GPUs in cloud environments.

This has contributed significantly to Nvidia's stock soaring by nearly 230% year to date, while Intel shares have seen a 68% increase.

In response to the dominance of Nvidia in the market, both AMD and Intel have introduced their own chips, aiming to entice AI companies away from Nvidia's stronghold.

On Thursday, Intel's stock experienced a 1% uptick following the chip unveiling.

Although specific details about Gaudi3 were scarce, it is expected to compete directly with Nvidia's H100, the preferred choice for companies constructing extensive chip farms to power large-scale AI applications, as well as AMD's upcoming MI300X, slated for customer shipments in 2024.

Intel has been actively developing Gaudi chips since 2019, following its acquisition of chip developer Habana Labs.

At a launch event held in New York, Intel CEO Pat Gelsinger expressed enthusiasm for the burgeoning field of generative AI, identifying it as the highlight of 2023.

Gelsinger also predicted that the AI PC would take center stage in the coming year, introducing Intel's new Core Ultra processors as a key player in this domain.

The company aims to carve out a significant presence in the evolving landscape of AI applications with its latest chip offerings.

Kif Leswing / CNBC