Intel, to bolster its artificial-intelligence chip strategy!
Intel, the chip maker known for its dominance in the market for central processing units,
has lost its allure for investors over the past decade as Nvidia and AMD gobbled up the market for chips designed for AI purposes, and gaming -industry, WSJ reports
- Intel falls behind Nvidia, the leader in the market for chips designed to excel at AI computations.
However, under new CEO Pat Gelsinger,
Intel has invested heavily introducing new AI software for its expanding lineup of chips to improve AI-driven chatbots, facial recognition and movie trends, among other applications.
- Nvidia now accounts for about 80% of revenue from AI-specific computation in big data centers, according to Informa PLC’, a British research and consulting firm
Nvidia, Intel and AMD market revenue chart by Marketwatch
AI chips are a relatively small but rapidly growing segment of the overall chip market. Rising demand for faster, more efficient computation has spawned dozens of chip startups, while the leading chip makers have invested heavily.
The AI chip market was valued at around $8 billion in 2020, and expected to grow to nearly $200 billion by 2030, according to a report from Allied Market Research.
Intel’s strategy is rather simple,
To build a stable of chips and open-source software that covers a broad range of computing needs as AI becomes more prevalent. “There are a lot of things they haven’t executed on over the last five or six years,” says Matt Bryson, an analyst at Wedbush Securities.
“Clearly under Pat Gelsinger Intel is investing more in product development, and if you put more money into development, you should have a better ability to execute”
Ms. Rivera added that, Intel is ready to make that leap.
“We have the customer relationships, we have the market position, we have the unique differentiation—we just need to execute our strategy”
