/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg?w=860&resize=860,0&ssl=1 "Intel’s Gaudi AI chips are far behind Nvidia and AMD, gained’t even hit 0M purpose")
“We won’t obtain our goal of $500 million in income for Gaudi in 2024,” CEO Pat Gelsinger simply mentioned on the corporate’s Q3 2024 earnings name immediately.
Although Intel simply launched its latest Gaudi 3 accelerator this previous quarter, mentioned Gelsinger, “the general uptake of Gaudi has been slower than we anticipated as adoption charges have been impacted by the product transition from Gaudi 2 to Gaudi 3 and software program ease of use.”
Regardless of the missed purpose, Gelsinger says “we stay inspired by the market out there to us. There may be clear want for options with superior [total cost of ownership] primarily based on open requirements, and we’re persevering with to reinforce the Gaudi worth proposition.”
Afterward the decision, Gelsinger seemingly had some bitter grapes to share, declaring how to this point, the business’s big spend on AI chips has been targeted on coaching AI fashions within the cloud. “Coaching is creating the climate mannequin, not utilizing it,” he says, suggesting as soon as once more that placing AI into all of the chips, not simply ones within the cloud, may be extra essential in the long term.
Intel reported $13.3 billion in income in quarterly earnings immediately, down 6 p.c 12 months over 12 months however up in comparison with final quarter — and losses of a whopping $16.6 billion. However these losses have been primarily based on $18.5 billion of impairments and restructuring prices, the price of Intel’s choice to transform itself for extra profitability sooner or later.
Final quarter it introduced a $10 billion price discount plan and over 15,000 layoffs, and it’s now detailing a number of the structural shifts inside the corporate too — together with transferring its edge computing enterprise into the Consumer Computing Group that typically handles its desktop and laptop computer chips, and integrating its software program groups into the corporate’s core enterprise models.
Gelsinger says Intel will “give attention to fewer tasks, with the highest precedence to be to maximise the worth of our x86 franchise throughout the shopper, edge, and information heart markets.”
