Intel Launches Next-Gen Xeon Server Processors and Gaudi 3

Intel made significant strides on Tuesday with the launch of its latest Xeon server processors, aiming to reclaim its position in the competitive data center market. Additionally, the company disclosed competitive pricing strategies for its Gaudi 3 artificial intelligence accelerator chips.

Xeon Processor Launch:

The sixth-generation Xeon server processors are pivotal for Intel, as the company faces challenges in the data center market, primarily from Advanced Micro Devices (AMD).

According to Mercury Research, Intel’s x86 chip market share in data centers has decreased by 5.6 percentage points over the past year to 76.4%, with AMD now holding 23.6%.

Manufacturing Challenges and Competition:

Intel’s manufacturing setbacks have provided opportunities for competitors like AMD, which utilizes Taiwan Semiconductor Manufacturing Co (TSMC) for chip fabrication. The Xeon 6 server processors launch aims to address this competitive landscape.

The Xeon 6 server processors are available in two main variants: a more robust performance model and an “efficiency” model targeting media, website services, and database operations. Intel emphasizes a significant reduction in server racks needed for the efficiency model to achieve comparable computing power.

Gaudi 3 AI Accelerator Chips:

Intel’s Gaudi 3 AI accelerator chips are priced competitively, with an accelerator kit containing eight chips priced at $125,000. This pricing strategy aims to position Intel favorably against competitors like Nvidia.

Intel plans to roll out additional variations of the Xeon processors next year. Moreover, the company unveiled details about its next-generation laptop chip, Lunar Lake, boasting a 40% reduction in power consumption and enhanced AI processing capabilities.

Commitment to Innovation and Collaboration:

Intel CEO Pat Gelsinger expressed enthusiasm about the upcoming releases, highlighting the collaboration with TSMC for core technologies.

He emphasized Intel’s commitment to advancing AI capabilities in PCs and unveiled plans for future chip releases, including Arrow Lake in 2024 and Panther Lake in 2025.