Technology

Intel Unveils Next-Generation Xeon Processors at Computex, Aiming To Reclaim Market Share from Nvidia and AMD

(TAIWAN) — At the prestigious Computex show in Taiwan, Intel Corporation's CEO Pat Gelsinger proudly unveiled new processors and outlined a bold vision for the future, emphasizing the company's dedication to innovation and asserting its vital role in the rapidly growing field of artificial intelligence.

During an inspiring presentation, Gelsinger introduced Intel's revolutionary Xeon 6 data center processors. Engineered with enhanced efficiency, these processors are poised to drastically reduce the physical footprint needed for data tasks, achieving what once took three times the space with previous generations. This leap in efficiency places Intel among the ranks of major industry contenders such as Advanced Micro Devices Inc. (AMD) and Qualcomm Inc., all of which are showcasing their advanced technologies and setting new performance benchmarks.

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Gelsinger Defends Moore's Law in Response to Nvidia

The show also served as a battleground for the competing tech giants, with CEOs from AMD and Qualcomm taking center stage earlier to demonstrate their technological superiority in various areas over Intel's offerings. Not to be outdone, Gelsinger directly addressed comments from Nvidia CEO Jensen Huang, who had suggested that traditional processors are becoming obsolete in the new era of artificial intelligence.

"Contrary to what Jensen would have you believe, Moore’s Law is alive and well," Gelsinger pronounced with conviction. He reaffirmed Intel's significance in the expansion of artificial intelligence as the leading supplier of personal computer chips. Drawing a historic parallel, Gelsinger compared the emergence of AI to the advent of the internet, predicting a seismic shift. “I think of it like the internet 25 years ago, it’s that big,” he declared. “We see this as the fuel that’s driving the semiconductor industry to reach $1 trillion by the end of the decade.”

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Intel's Gaudi Systems Set To Challenge Competitors with Affordable AI Processing

In a strategic move to capture a greater market share in AI processing, Intel launched its new line of Gaudi systems. These include intricately assembled kits composed of multiple processors, engineered specifically for generative AI training applications. Partners such as Dell Technologies Inc. and Inventec Corp. will offer these advanced systems, which promise to provide a more cost-effective solution in comparison to rival products.

Consumers and enterprises alike can look forward to two distinct kits. One set includes eight Intel Gaudi 2 accelerators, carrying a price tag of $65,000. For those demanding even more power, a kit with eight Intel Gaudi 3 accelerators will be available for $125,000. According to Intel's analysis, these offerings are not only more wallet-friendly but also provide significant performance benefits when pitted against the competition.

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For more insights into the fierce competition, readers can explore additional information:

Overcoming Nvidia's Lead in AI Data Processing

The raw power of Intel’s Gaudi 3 clusters is manifested in their composition of 8,192 accelerators, allowing for an AI model training time up to 40% faster than an equivalent cluster of Nvidia H100 GPUs. Moreover, execution of AI inferencing tasks with Gaudi 3 is touted to be twice as quick when benchmarked against popular models from companies like Meta Platforms Inc. and Mistral. These developments are noteworthy, though they still may not wrest the data center AI processing crown from Nvidia.

"The metrics of each individual accelerator’s performance are not the defining factor anymore," stated Leonard Lee, an industry analyst at neXt Curve. Nvidia's stronghold lies in its unified and integrated ecosystem, along with proprietary technologies like NVLink, which enable their computing clusters to function seamlessly as a single, powerful logical unit. Lee highlighted, “The advantage is the creation of a colossal logical accelerator of unprecedented magnitude.”

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Intel Strives for Recovery and Renewal Amid Competitive Pressures

The headquarters of Intel, based in Santa Clara, has been the nucleus of the computing sphere for decades. However, recent times have seen the company's revenue dip, partly due to lagging behind in the competition with its industry peers. Three years ago, Gelsinger retook the helm with a mission to revitalize the company's product lineup and reclaim its erstwhile dominance in both chip design and fabrication.

Gelsinger's strategy involves significant investments, aiming to transform and expand Intel's fabrication facilities. One such endeavor is the creation of a semiconductor hub in Ohio, representing a $28 billion investment that underscores the CEO's commitment.

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For further reading on Intel's massive initiative, please visit: Intel Is Spending $28 Billion to Make Ohio a Global Chip Capital

Despite these efforts, the resurgence in sales is not expected to be swift. Analyst projections suggest that by the end of 2024, Intel may see a revenue shortfall of $20 billion compared to its 2021 figures. Competitors Nvidia and AMD, on the other hand, are positioned to capitalize on the expanding market for AI hardware. Nvidia's sales are anticipated to double, while AMD is likely to experience growth exceeding 10%, as both companies harness the surge in AI technology investments more effectively than Intel thus far.

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The “Most Consequential Time” for Intel and Its Partners

In what could be perceived as a rallying cry, Gelsinger called upon the resilience and collective power of the company and its allies. “This is the most consequential time of our careers together," he said, encapsulating the magnitude of the moment and the opportunities it presents. His speech invoked a sense of urgency and readiness within Intel and its sprawling network of partners, with a clear message: Intel was created for this pivotal juncture, and the company is intent on seizing it.

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With additional inputs from expert reporter Ian King, this coverage brings to light the strategic moves and technological advancements shaping the future of Intel, and in broader terms, the entire semiconductor industry.

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©2025 Bloomberg L.P.

As evidenced by Gelsinger's assertive statements and Intel's latest product releases, the company is unwavertingly poised not only to compete but to lead in the era of artificial intelligence. With its rich history of innovation and determination to overcome recent challenges, Intel's trajectory in the semiconductor landscape remains a critical narrative to follow in the years to come. Through strategic partnerships, continued investment in research and development, and a newly refined focus on AI technology, Intel is firmly committed to shaping the future of computing. It remains to be seen how the market dynamics will continue to evolve, but one thing is certain – Intel's journey is far from over.

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