Intel's new Gaudi 3 chip to rival Nvidia's H100 chip

Intel revealed at its Vision event on Tuesday a new AI chip called Gaudi 3 that will rival Nvidia's H100 chip as it strives to offer an alternative to the growing demand for AI chips by major tech companies.

The tech giant claims that its Gaudi 3 chip can train specific large language models 50% more quickly than Nvidia's prior-generation H100 GPU chip. The company went further to state that its chip was capable of computing generative AI responses, a process called inference, more quickly than the H100 chips for some of the models it tested.

The Gaudi 3 chips were built with Taiwan Semiconductor Manufacturing Co.'s 5-nanometre process and were designed to be strung together with thousands of others to generate enormous amounts of computing power.

While Intel may have developed decent chips, it remains to be seen if they can challenge Nvidia's dominance in the chip business. Going by the numbers, Nvidia currently holds up to 98% of the data center chip market, according to analysts from Wells Fargo.

The chip empire also made $60.9 billion in revenue for its 2024 fiscal year, beating Intel's $54.2 billion revenue for its 2023 fiscal year. With virtually every major tech company using Nvidia's chips, Intel would need to surpass its standards to have any hope of rivaling Nvidia in the chip market.