Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal

Nvidia made a luck connected the AI boom. AMD’s rival AI spot became the fastest ramping merchandise successful its history, already pulling successful $1 cardinal per quarter and inspiring AMD to remake itself as an AI company overall. But Intel, which suggested it would propulsion successful $1 billion, adjacent $2 billion connected the backmost of AI successful 2024, present says it won’t adjacent conscionable its much humble $500 cardinal extremity for its Gaudi AI accelerator this year.

“We volition not execute our people of $500 cardinal successful gross for Gaudi successful 2024,” CEO Pat Gelsinger conscionable said connected the company’s Q3 2024 net telephone today.

Though Intel conscionable launched its caller Gaudi 3 accelerator this past quarter, said Gelsinger, “the wide uptake of Gaudi has been slower than we anticipated arsenic adoption rates were impacted by the merchandise modulation from Gaudi 2 to Gaudi 3 and bundle easiness of use.”

Despite the missed goal, Gelsinger says “we stay encouraged by the marketplace disposable to us. There is wide request for solutions with superior [total outgo of ownership] based connected unfastened standards, and we are continuing to heighten the Gaudi worth proposition.”

Later connected the call, Gelsinger seemingly had immoderate sour grapes to share, pointing retired however truthful far, the industry’s immense walk connected AI chips has been focused connected grooming AI models successful the cloud. “Training is creating the upwind model, not utilizing it,” helium says, suggesting erstwhile again that putting AI into each the chips, not conscionable ones successful the cloud, mightiness beryllium much important successful the agelong run.

Intel reported $13.3 cardinal successful gross successful quarterly net today, down 6 percent twelvemonth implicit twelvemonth but up compared to past 4th — and losses of a whopping $16.6 billion. But those losses were based connected $18.5 cardinal of impairments and restructuring charges, the outgo of Intel’s determination to rework itself for much profitability successful the future.

Last 4th it announced a $10 cardinal outgo simplification program and over 15,000 layoffs, and it’s present detailing immoderate of the structural shifts wrong the institution excessively — including moving its borderline computing concern into the Client Computing Group that mostly handles its desktop and laptop chips, and integrating its bundle teams into the company’s halfway concern units.

Gelsinger says Intel will “focus connected less projects, with the apical precedence to beryllium to maximize the worth of our x86 franchise crossed the client, edge, and information halfway markets.”