Intel battles AMD with new data center chips

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Intel data center

TAIPEI/SAN FRANCISCO, June 4 – Intel launched its next-generation Xeon server processors on Tuesday to regain data center market share. Additionally, its Gaudi 3 AI accelerator chips will be priced lower than rivals’ chips.

The sixth-generation Xeon chips are crucial for Intel, which has been losing data center market share to AMD. Intel’s x86 market share dropped 5.6 points to 76.4% in the past year. Mercury Research reports that AMD now holds 23.6% of the data center market.

Intel’s manufacturing stumbles allowed AMD to gain business by using Taiwan Semiconductor Manufacturing Co to fabricate its chips.

The Xeon 6 server processors come in two main flavors, a larger, more powerful version, and an “efficiency” model that Intel pitched as a replacement for older-generation chips.

The new efficiency model requires 67% fewer server racks than the second generation chips. It is designed to serve media, websites, and perform database calculations.

The powerful performance model handles computations for complex AI responses. It is also designed for tasks requiring increased processing power.

The efficiency Xeon chip is available on Tuesday, with the “performance” model arriving in the third quarter. Intel plans to launch additional variations next year. Intel delayed the sixth generation chip by a year to use a different manufacturing process.

Furthermore, Intel’s data center chips not only outperform competitors but also address evolving market demands.

Whether it’s powering cloud computing services or facilitating artificial intelligence algorithms, Intel data center chips excel in meeting diverse needs.

In conclusion, Intel’s relentless pursuit of innovation in data center technology positions it as a formidable competitor in the market. With its cutting-edge data center chips, Intel continues to shape the future of computing and empower businesses worldwide.
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