Intel Launches New Xeon Server Processors and AI Accelerator Chips to Regain Market Share
Intel has introduced its next-generation Xeon server processors, aiming to reclaim its market share in data centres. On Tuesday, the company also revealed its Gaudi 3 artificial intelligence (AI) accelerator chips, which will be priced significantly lower than competitors’ products.
Intel’s latest Xeon 6 server processors offer two distinct models: Performance and Efficiency. The Performance model excels in tasks demanding significant computational power, like AI-driven response generation. In contrast, the Efficiency model is tailored for media services, websites, and database operations. Notably, it promises a 67% reduction in server rack requirements compared to previous Xeon chips, enhancing efficiency and reducing operational costs.
Intel’s new Xeon processors are critical for the company, which has been steadily losing market share to Advanced Micro Devices (AMD). Over the past year, Intel’s share of the data centre market for x86 chips has dropped by 5.6 percentage points to 76.4%, while AMD’s share has risen to 23.6%, according to Mercury Research. Delays in Intel’s manufacturing process have allowed AMD to gain ground, as AMD uses Taiwan Semiconductor Manufacturing Co (TSMC) to produce its chips.
“Simply put, performance up, power down,” said Intel CEO Pat Gelsinger at the Computex trade fair in Taipei, where he presented the new server chips. The efficiency model is available immediately, while the performance model will be released in the third quarter. Additional variations are expected next year.
Intel also introduced its Gaudi 3 AI accelerator chips, positioning them as cost-effective alternatives to rival products. A Gaudi 3 accelerator kit, which includes eight AI chips, is priced at approximately $125,000. In comparison, a similar system with eight Nvidia H100 AI chips can exceed $300,000.
“In other words, it crushes the competition,” Gelsinger remarked about the competitive pricing.
Additionally, Intel announced its next-generation laptop chip, Lunar Lake, which uses 40% less power and includes a more powerful AI processor. Lunar Lake is set to ship in the third quarter and is expected to power the largest number of next-generation AI PCs in the industry. Gelsinger expressed enthusiasm about the new PCs using Lunar Lake and thanked TSMC for its support in developing the core technologies.
Looking forward, Intel plans to introduce Arrow Lake next year, followed by Panther Lake in 2025.