To beat NVIDIA in the highly competitive and rapidly growing AI chip industry, Intel has announced its own AI chip, appropriately named Gaudi 3, for the segment.

One of the main strengths of Gaudi 3 is its outstanding power efficiency, which NVIDIA claims to be at least twice as efficient as the H100 GPU and one and a half times faster running AI models. 

This breakthrough would signify a notable milestone in the chip development for AI, allowing for data center computing to undergo enormous transformation.

Intel's Gaudi 3 is expected to be highly flexible because of the choices in deployments. The kit could be plugged in bundles of eight chips on the same motherboard, or come as a typically standalone card that is adaptable with the mean existing systems. This opens an opportunity for the use of different computing purposes.

Market Contest and Market Growth Perspectives
 

However, NVIDIA currently owns the AI chip market, controlling around 80% of the industry. Now, this situation has been challenged with Intel entering the game with its third generation of Gaudi chips. 

The data center AI market is expected to register significant growth as AI infrastructure is being built up by major cloud providers and companies. Such a growth potential implies a representative structure even though NVIDIA has an advantage over others in terms of market share.


 

Open Platform and Modularity Planning

Intel's philosophy behind Gaudi 3 is not limited to just the hardware; it's all about building an open and collaborative ecosystem. 

Through their alliance with chip and software goliaths like Google, Qualcomm, and Arm, Intel aspires to build open software i.e. solutions that support customers as they don’t need to depend entirely on proprietary software like NVIDIA’s CUDA.


 

Besides, the move to Gaudi 3 on a five-nanometer process demonstrates Intel's shift to using external foundries, which is a different approach than Intel usually takes of in-house manufacturing. 

The latest news of CEO Patrick Gelsinger proposing the construction of an Ohio factory for AI chip production once more shows how much the company cares about growing in the field of semiconductor manufacturing.