by At the Computex 2024 conference in Taipei, Taiwan, Intel (INTC) CEO Pat Gelsinger showed off the company’s new data center chip, the Xeon 6. Yahoo Finance Tech Editor Dan Howley explains the latest details on Intel’s chip offerings and their various use cases as Intel. hoping to better compete with the likes of Nvidia (NVDA) and Advanced Micro Devices (AMD)
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This post was written by Luke Carberry Mogan.
Video transcript
Okay, the chip war, we are also tracking that this morning the chip war is heating up Intel shares.
They are moving the free market higher after announcing a new data center chip.
Now, the unit is designed for high-performance computing for AI data centers and is also introducing an AI Accelerator.
Intel is far behind some of those chip maker competitors like NVIDIA’s new products and Intel’s A MD though.
Will it be enough for them to take market share from the chip giants to break it down?
We have Yahoo financial reporter Dan Howley here with us, our tech DH Dan, what do we know about this?
And is it significant enough for Intel to take market share?
Yes, Brad, these kind of announcements are mostly telegraphed.
The, we have the, the Zion that’s the data center uh uh chip.
It’s not necessarily an AI Accelerator like what you get from NVIDIA uh or, or A MD, it’s really an all-purpose chip.
The point is, it’s a high-performance computing chip rather than something that would be powered by the generation of the AI uh which is still very good.
This is what I mean, uh, servers still need this kind of CPU chip.
So this is a big announcement uh for Intel and for, for the industry uh on the, the AI side of things where all the hype is, uh they announced their Godi chip prices, uh they say that’s coming in less. than what you would see from uh NVIDIA.
Uh or, or MD, they probably just vaguely said who the contestants were.
Uh But still the fact that you would be able to buy a competitive chip uh at a price that is lower than what you would have to pay for it.
Things like NVIDIA or A MD are important because those chips go for thousands of dollars.
Uh So those are kind of, you know, the big deals that are coming out of Intel on the day data centers.
They also announced their new Lunar LA chip.
uh These are for uh consumer and commercial PCs, uh laptops and desktops.
Uh And they say this is essentially a chip that will uh be able to compete with the likes of the uh army line of chips.
Uh Qualcomm Snap Dragon X Elite Line.
Uh Those chips are basically designed to go ahead and compete with what Apple has been able to do.
It is Max that takes power and performance so long battery life and strong performance into a chip, which has really fallen by the wayside.
So, uh Qualcomm went ahead and did that with their handset chip.
And now Intel says they’re doing the same.
And oh, by the way, A MD announced its own new AI accelerator map as well as chips for laptops and desktops and A IP CS.
So Dan talked to me about the customer that Indel is targeting and how that differs from NVIDIA.
As I know they’ve talked a lot about enterprise customers here which is where they see a stronger use case in terms of getting market share from NVIDIA.
Yeah, I really think, you know, the hyper scales are, you know, the Microsoft the Google they’re all on NVIDIA at this point, you know, they, they, puts they uh compete uh chips as well but because, you know, their, their customers want to have some kind of choice when it comes to the, the types of chips that they have, maybe like them to take advantage of when they are, they are building out their, their AI Platforms.
Uh but this will allow other companies outside of the hyper scale to get into the AI generation at a potentially lower price.
And I think that’s something, that’s worth knowing, uh admits that it’s just the hyperscale, it’s not just the Microsofts, the Googles, the Amazons, the Metas, uh the Teslas, what have you, it, it’s healthcare it is, uh you know, individual uh research institutions.
Uh, it’s the auto industry.
Uh And so that’s where we were, we could see Intel really shine.
Uh They’re also, uh, you know, they, they’re uh AI accelerator chip is going to pair nicely with the Zion six chip.
Uh just because there will be, the, you know, the compatibility uh because they are from the same manufacturer.
And so I think that’s something that Intel has as far as market share goes.
You know, I mean, look, NVIDIA is still the leader in the space.
They are, they are, they know what they are, they, they are doing.
They have been doing it for a long time.
Uh, they’ve got the software and the hardware, they’ve got that moat that they’ve built up.
Uh, that’s going to take a while to, get, uh, companies to break through.
I don’t think it means we’re going to see significant market share, uh, improvements from Intel, but they’ll still, you know, get some.
Uh, but this isn’t, you know, a video knocking off his throne type of thing by a long shot.
Okay, Dan, we’ll have to leave it at that.
Thank you so much for being with us on everything.
Chips, lots of news on your beat this week and as always we appreciate it.
Thank you very much.
