After a long series of bankruptcies, breakdown and malfunctions, the chip manufacturer Intel does not play a role in the market for artificial intelligence (AI). That should change when it comes to the new company boss Lip-Bu Tan.
Because the hoped-for trend removal has not been reached so far by taking over AI startups, the American group now wants to fight against the world market leader Nvidia with his own developments.
When presenting the last quarterly results, Tan gave a view of his plans: he wants to optimize existing products for the use of AI. “We are following a holistic approach to define our portfolio again.” This requires radical reconsideration so that his company can recognize the needs of customers in advance. However, Tan admitted that this would not be done at night.
Intel has a mammoth task for it
Experts judge the prospects, because Intel has so far had little success when it comes to AI: the AI processor “Gaudi” for data centers has not been important market shares so far. The self -developed chip “Falcon Shores” does not bring the hoped for performance, which is why CEO Tan has put the development on ice. The processor may only be used for internal testing purposes. A few years ago Intel took over the Nervea company to use its technology to build AI chips. The project has now been given up.
Moreover, Intel should not only defend itself against Nvidia’s competition. Countless technology companies such as Apple, Amazon or Google are working on their own chips to reduce their dependence on the world market leader. Intel’s arch -rival AMD also offers special AI processors. Moreover, the planned catch -up is made more difficult by the fact that Nvidia no longer only sells processors, but entire data centers.
Expert: Intel needs strong AI chips
Behavior, optimistic, Bob O’Donnell, chief analyst of the Technalysis Research House, expresses plans. “Intel looks back on a long history of self -developed, groundbreaking chips. That is why I am not surprised that they are concentrating on KI on their own developments. If it is possible to develop the suitable software to make it easier to use these new chips, they have a chance – but that is a big one.”
Nvidia owes its success as a supplier of AI processors, not just the performance of his chips. An aspect is the “Cuda” program package, making it easier to write developers to write applications for NVIDIA processors who exhaust their skills. To break through Nvidia’s dominance, Intel joined an alliance of top-class technology companies last year that wants to remove a competitive software package for chip programming.
Intel apparently wants to concentrate on chips that are not designed for the training of AI, but their use in data centers and on devices, explains portfolio manager Hendi Susanto from the asset manager Gabelli. “These areas are promising, but the scope and the pace of growth remain uncertain.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
