Intel Software Revenue Targets $1 Billion by 2027

Intel's drive into software is going well, with the company on target to achieve cumulative software sales of $1 billion.
Intel's drive into software is going well, with the company on target to achieve cumulative software sales of $1 billion.
Intel's drive into software is going well, with the company on target to achieve cumulative software sales of $1 billion.

Intel push into software is progressing well, with the company on track to achieve cumulative software revenue of $1 billion by the end of 2027, Chief Technology Officer Greg Lavender told Reuters.

Software Revenue Growth:

In 2021, Intel made over $100 million in software revenue, the year CEO Pat Gelsinger brought in Lavender from cloud computing company VMware to guide the chipmaker’s software strategy. Since then, Intel has acquired three software companies. Lavender expressed confidence in reaching his goal of $1 billion in software and developer cloud subscription revenue by 2027, possibly even sooner.

Expanding Software Services:

Intel, which generated $54 billion in revenue in 2023, offers various software services and tools, including cloud computing and artificial intelligence (AI). Lavender’s strategy focuses on providing services in AI, performance, and security, with significant investments in all three areas.

Separately, Lavender noted strong demand for Intel’s upcoming Gaudi 3 chip, which he believes can help Intel secure second place in the AI chip market. Despite Intel and Advanced Micro Devices (AMD) efforts, Nvidia dominated approximately 83% of the data center chip market in 2023.

Supporting Open-Source Initiatives:

Intel actively supports open-source initiatives to develop software and tools that power various AI chips. Part of Nvidia’s success is tied to its CUDA software, which binds developers to Nvidia chips. France’s antitrust regulator is set to charge Nvidia for suspected anti-competitive behavior, raising concerns about the AI sector’s dependence on CUDA.

UXL Foundation and Triton Project:

Intel is part of the UXL Foundation, a consortium of tech companies, including Qualcomm, Samsung Electronics, and Arm Holdings, developing an open-source project to make computer code run on any machine, regardless of the chip and hardware used. Lavender also highlighted Intel’s contribution to Triton, an OpenAI-led initiative to build an open-source programming language to enhance code efficiency across AI chips. AMD and Meta are also supporting the project. Triton is already running on Intel’s existing graphics processing units and will be compatible with the company’s next generation of AI chips.

“Triton is going to level the playing field,” Lavender said.

With these strategic initiatives and collaborations, Intel aims to solidify its position in the software and AI markets, driving innovation and growth in the coming years.

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Tony Boyce is a seasoned journalist and editor at Sharks Magazine, where his expertise in business and startups journalism shines through his compelling storytelling and in-depth analysis. With 12 years of experience navigating the intricate world of entrepreneurship and business news, Tony has become a trusted voice for readers seeking insights into the latest trends, strategies, and success stories.

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