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April 11, 2024, 3:05 a.m.
2021

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Brief news summary

Intel has introduced its new Gaudi 3 chip, claiming it surpasses Nvidia's H100 chip by 50%. The new chip offers better inferencing performance, power efficiency, and time-to-train, all at a lower cost. Intel aims to break Nvidia's dominance in the AI industry, including its CUDA software ecosystem. The company has also formed partnerships and led consortiums to develop open-source AI solutions and accelerate ethernet networking for AI workloads. While Nvidia's upcoming releases may outperform Intel's Gaudi chip, Intel's initiatives represent a potential long-term threat to Nvidia's market dominance. Intel's turnaround story relies on the success of Gaudi in the AI market and the profitability of its foundry segment. If the company can achieve its goals, the stock could rebound in the future.

Intel has introduced its new Gaudi 3 chip, claiming it outperforms Nvidia's H100 chip by 50% in terms of AI acceleration. Under previous management, Intel struggled to keep up with advancements in leading-edge manufacturing and the rise of GPU-based AI. However, under CEO Pat Gelsinger, Intel is aiming to challenge Nvidia's AI dominance. The Gaudi 3 chip offers better inferencing performance, improved power efficiency, and faster time-to-train compared to the H100.

Intel is also collaborating with other tech giants to develop open-source alternatives to Nvidia's software stack and leading a consortium to accelerate ethernet networking for AI workloads. While Nvidia is releasing more powerful chips in the near future, Intel's efforts pose a long-term threat. Though Intel's turnaround story depends on the success of Gaudi in the AI market and the profitability of its foundry segment, if the company achieves its goals, the stock could rebound in the future.


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