Intel's Gaudi 3 AI Accelerator Chip Welcomes Its First Cloud Services Customer, IBM

IBM Cloud plans to make the Gaudi 3 chip available to its customers early next year, expanding its AI computing power and marking a significant market endorsement for Intel's AI chips.

Gaudi 3 represents Intel's formidable challenge to NVIDIA and AMD within the AI chip sector. Designed for both hybrid and on-premises environments, this chip offers more cost-effective, secure, and innovative AI computing solutions.

Despite Gaudi 3's impressive price/performance ratio, converting customers with established NVIDIA partnerships will remain a significant hurdle.

Earlier this year, Intel showcased a reference design for Gaudi 3, collaborating with partners such as Lenovo, Dell, WiseConnect, and AMD to integrate it into their servers.

However, the launch timing for Gaudi 3 was less than ideal for Intel. In April, Intel forecasted Gaudi 3 revenues of just $500 million in 2024, a modest figure compared to the overall AI chip market.

Nonetheless, Intel's CTO Greg Lavender remains optimistic about the company's position in the AI chip arena, suggesting that Intel could potentially secure the second spot behind NVIDIA.

By early 2025, it is anticipated that IBM Cloud will fully deploy Gaudi 3 AI accelerator services, enabling organizations to more easily manage and deploy AI workloads, thereby advancing the development and adoption of AI technology.