Intel has launched its latest AI chip, Gaudi 3, designed to enhance the training and deployment of complex AI models like those used by OpenAI's ChatGPT. It will be commercially available to customers in the third quarter. However, pricing details are yet to be specified.

The Intel Gaudi 3 AI will power AI systems with up to tens of thousands of accelerators, and the company claims its chip outperforms Nvidia's H100 GPUs.

The new chips are part of Intel's effort to fulfill enterprise-specific ML and GenAI requirements and address scaling challenges faced by enterprises.

Analyst QuickTake: With the Gaudi 3 chip, Intel aims to disrupt and capture a significant portion of the rapidly expanding AI chip market, which is currently dominated by Nvidia, holding approximately 80% of the market share. Moreover, late last month, Intel and the US Department of Commerce signed a non-binding preliminary memorandum of terms (PMT) for up to USD 8.5 billion in direct funding to Intel for commercial semiconductor projects under the CHIPS and Science Act.