Intel has announced that its latest Gaudi3AI accelerator chip has secured its first cloud computing customer: IBM Cloud. According to statements from both parties on Thursday, IBM Cloud will begin offering Gaudi3 chips to customers early next year, enhancing AI computations in hybrid and on-premise environments. IBM also plans to support Gaudi3 in its Watsonx AI and data platform.
Justin Hotard, General Manager of Intel's Data Center and AI Division, stated in the announcement: "Unlocking the full potential of AI requires an open and collaborative ecosystem, providing customers with choice and accessible solutions." He also noted that integrating the Gaudi3AI accelerator with Xeon CPUs into IBM Cloud will create new AI capabilities and meet the market's demand for affordable, secure, and innovative AI computing solutions.
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Gaudi3 was released in December 2023 as Intel's latest response to competition in the AI chip market from Nvidia and AMD. This series of accelerator chips stems from Intel's $2 billion acquisition of Habana Labs in 2019. Gaudi3's design is not only impressive in performance but also introduces innovations in Ethernet connectivity technology, aiming to compete with Nvidia's InfiniBand connectivity technology.
Although Gaudi3 excels in cost-effectiveness, Intel faces significant challenges from Nvidia. Nvidia currently dominates the AI chip market and is expected to generate $40 billion in data center revenue this year, while Intel anticipates Gaudi3 revenue of only $500 million in 2024. Nevertheless, Intel's Chief Technology Officer, Greg Lavender, remains optimistic about the company's prospects, believing that Intel could rank second in the AI chip market behind Nvidia.
However, Intel is also undergoing internal adjustments amidst market competition. In July, the company's Chief Technology Officer, Greg Lavender, was optimistic about Intel's potential to rank second in the AI chip market. However, in the subsequent second-quarter earnings report, Intel announced a $1.6 billion loss, leading to plans to lay off 15,000 employees and save $10 billion through cost-cutting by 2025.
Facing Nvidia's upcoming release of its more powerful next-generation AI chip, Blackwell, in the fourth quarter, Intel insists on not making direct comparisons, stating that it will discuss performance after Blackwell's official launch.