Intel’s Gaudi 3 processor has finally found a large customer!
IBM is going to be using a mixture of Gaudi 3s with Xeon CPUs in its cloud infrastructure starting next year.
IBM and Intel on Thursday said IBM Cloud will begin offering Gaudi 3 to customers early next year. The chip’s accelerators will be available for both hybrid and on-premise environments, and IBM says it plans to enable support for Gaudi 3 within its Watsonx AI and data platform.
“Unlocking the full potential of AI requires an open and collaborative ecosystem that provides customers with choice and accessible solutions,” Justin Hotard, general manager of Intel’s data center and AI division, said in a statement. “By integrating Gaudi 3 AI accelerators and Xeon CPUs with IBM Cloud, we are creating new AI capabilities and meeting the demand for affordable, secure, and innovative AI computing solutions.”
https://techcrunch.com/2024/08/29/ibm-cloud-will-offer-intel-gaudi-3-chips-next-year/
IBM’s cloud unit probably isn’t going to move the needle much when it comes to Gaudi 3 sales. Then again when you’re starting at only $500 million an additional $50 million in sales is meaningful. I guess that number would sound okay in the financial report… “10% growth year over year!!!“
Gaudi chips were originally a Habana labs product… and then in 2019 Intel purchased Habana labs to try to stay ahead of the AI curve. This most obviously has not worked. Intel has lagged behind both AMD’s and Nvidia’s product offerings and has no showstopper products like Nvidia’s Blackwell.
You’ve got to wonder what Intel’s AI strategy really is. Is it to be the market leader? Is it to be the technological leader? Is it to be the low cost option? From what I’ve heard it kind of sounds like they’re aiming for the low cost option to ultimately take away sales from AMD and Nvidia (they do need the cashflow)… while claiming they want to be both the overall market leader AND the technological leader.
It’s like someone who plays beach volleyball also trying to be an Olympic weight lifter AND an Olympic runner. They can certainly try but they might be better off committing to only one of those activities.
Good for Intel getting a new customer, they need all the positive news they can get. But will this really change things over at Intel?
No.