Intel says it will release a new AI chip to challenge Nvidia

In short: Intel says it plans to release a new AI chip by the end of the year, aiming to compete with Nvidia.

What happened

Intel’s data center division said the company is aiming to launch a new graphics chip for AI work by the end of this year.

The chip is described as an “inference” GPU. A GPU is a type of computer chip often used for AI because it can do many calculations at once (like having lots of checkout lanes open at the same time). “Inference” means running an AI model that is already trained, so it can answer questions or generate results for users (like using a finished recipe, not creating the recipe).

Intel is targeting Nvidia, which is currently the best-known supplier of these AI chips for data centers. Data centers are large buildings filled with computers that run online services.

The Financial Times report also notes that Intel’s shares have risen more than 200% this year. The comments come as investors watch how chip makers position themselves for demand tied to AI services.

Why it matters

Many popular AI tools depend on data centers with enough chips to handle large numbers of requests. If Intel can offer a competitive alternative to Nvidia, it could give cloud companies and other buyers more choice on price and supply. That can affect how quickly AI features show up in everyday products, and how much those services cost to run.

Source: Financial Times