Intel has partnered with IBM Cloud to offer its Gaudi 3 AI accelerator chip to customers starting next year. This collaboration aims to provide customers with affordable and innovative AI computing solutions. The Gaudi 3 chip, which was unveiled in December 2023, is Intel’s response to AI chips from rivals Nvidia and AMD. By integrating Gaudi 3 accelerators and Xeon CPUs with IBM Cloud, Intel hopes to unlock the full potential of AI and meet the growing demand for AI capabilities.
Despite the potential of Gaudi 3, Intel faces challenges in a market dominated by Nvidia. While Intel expects to generate $500 million in revenue from Gaudi 3 in 2024, AMD and Nvidia anticipate much higher figures. AMD projects $3.5 billion in sales from its Instinct MI300-series GPUs, while Nvidia expects $40 billion from its data center business. Intel’s late entry into the AI chip market and Nvidia’s strong incumbency make it difficult for Intel to compete.
Intel’s Chief Technology Officer, Greg Lavender, expressed optimism that the company could secure second place in the AI chip market, behind Nvidia. However, after posting a $1.6 billion loss for Q2, Intel announced plans to cut costs aggressively and eliminate 15,000 jobs. This highlights the challenges Intel faces in establishing itself as a major player in the AI chip market.
Adding to Intel’s difficulties, Nvidia plans to increase production of its next-generation AI chip, Blackwell, in Q4. Blackwell is expected to offer up to four times the performance of Intel’s Gaudi 3. Intel has refrained from providing direct comparisons with Blackwell, citing the unavailability of the chips for public testing.
The collaboration between Intel and IBM Cloud is a significant step for both companies. It allows IBM Cloud to offer Gaudi 3’s accelerators to its customers, providing them with more AI computing options. For Intel, this partnership represents an opportunity to expand its customer base and demonstrate the capabilities of its Gaudi 3 chip. By integrating Gaudi 3 with IBM Cloud’s Watson AI and data platform, Intel aims to create accessible and secure AI solutions for a broader range of customers.
In conclusion, Intel’s collaboration with IBM Cloud to offer Gaudi 3 AI accelerators is a strategic move to compete in the AI chip market. Despite facing challenges from established players like Nvidia, Intel is determined to provide affordable and innovative AI computing solutions. The partnership with IBM Cloud allows Intel to expand its customer base and showcase the capabilities of its Gaudi 3 chip. As the demand for AI continues to grow, this collaboration positions Intel and IBM Cloud to meet the evolving needs of customers seeking AI computing solutions.
