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Intel Battles AMD with New Data Center Chips

POSTED ON June 4, 2024 •   TECHNOLOGY      BY Abiodun Saheed Omodara
Intel latest Xeon server processors l Credit: Reuters

Intel unveiled its latest Xeon server processors on Tuesday in an effort to regain market share in the data center industry.

The company also announced that its Gaudi 3 artificial intelligence accelerator chips would be priced significantly lower than those of its competitors.

The sixth generation Xeon chips are crucial for Intel as it aims to counter the market share loss to Advanced Micro Devices (AMD) in the data center market for x86 chips.

Intel's share has declined to 76.4% while AMD now holds 23.6%, according to data from Mercury Research. Intel's manufacturing process challenges have allowed AMD to gain traction by utilizing Taiwan Semiconductor Manufacturing Co to produce its chips.

The Xeon 6 server processors come in two main versions - a larger, more powerful model and an "efficiency" model intended as a replacement for older-generation chips.

The efficiency model requires about 67% fewer server racks to achieve the same computing power as the second generation chips, catering to media, websites, and database calculations.

During the Computex trade fair in Taipei, Intel's CEO Pat Gelsinger emphasized the improved performance and reduced power consumption of the new server.

The more powerful model is designed for complex AI models and tasks requiring increased horsepower, while the efficiency model is available now with the performance model set for release in the third quarter.

Additional variations are planned for launch next year, following a year-long delay due to a different manufacturing process.

In a briefing with reporters, Intel disclosed that the Gaudi 3 accelerator kit, featuring eight AI chips, is priced at about $125,000, while the earlier Gaudi 2 has a list price of $65,000.

Speaking in Taipei, Gelsinger emphasized Intel's commitment to innovation and competitiveness in the market.

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