Why Intel won't bring Falcon Shores AI chip to market
What's the story
Intel has opted against releasing its next-gen GPU, Falcon Shores, aimed at high-performance computing and artificial intelligence (AI) workloads.
The move comes as the tech giant tries to bounce back from a string of failed product launches and massive financial losses.
The announcement was made by Intel co-CEO Michelle Johnston Holthaus during the company's fourth-quarter earnings call.
Repurposing
Falcon Shores to serve as internal test chip
Holthaus also revealed that Intel plans to use Falcon Shores as an internal test chip, not launching it in the market.
This move is part of the company's strategy to streamline its roadmap and optimize resources.
"AI data center...is an attractive market for us," Holthaus said during the call. "But I am not happy with where we are today."
New direction
Intel shifts focus to Jaguar Shores
Intel's main focus will now be on Jaguar Shores, which Holthaus described as an opportunity for the company to "develop a system-level solution at rack scale...to address the AI data center more broadly."
This shift in strategy comes after the disappointing performance of Gaudi 3, Intel's previous dedicated AI data center chip.
The company missed its $500 million sales target for Gaudi 3 due to software-related issues.
Market competition
Struggle in AI data center chip market
Intel is facing stiff competition in the AI data center chip market, with rivals like AMD and NVIDIA making significant strides.
AMD is projected to generate approximately $7 billion in AI chip revenue in 2025.
Meanwhile, NVIDIA could potentially reach a staggering $195 billion in revenue by fiscal 2026, some analysts have predicted.