Intel will not release Falcon Shores chip: the company will use it as a test chip internally
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Intel has announced that it will not launch the Falcon Shores chip, which was planned to work with artificial intelligence and high-performance computing. Instead, the company decided to use this chip as a test chip within the company.
Here's What We Know
This decision is part of the company's strategy to correct course after a series of failed product launches and significant financial losses, while rivals AMD and Nvidia are gaining market share.
Intel CEO Michelle Johnston Holthouse said during the quarterly results call that Falcon Shores will be used as an internal test chip, but it will not be launched into mass production. She noted that the data centre market is very attractive for the company, but Intel does not currently have a significant share of the cloud market.
In the future, the company will focus on the Jaguar Shores project, which, according to Holthaus, will create a scalable and efficient data centre solution using artificial intelligence.
Last month, Holthaus lowered expectations for the Falcon Shores chip and explained that it was only an improvement on the previous Gaudi 3 chip. The Gaudi 3 chip failed to deliver on its promise due to software issues.
Intel faces serious competition in the AI chip market. AMD plans to earn about $7 billion from the sale of its AI chips in 2025, and Nvidia could reach an impressive $195 billion in revenue in 2026.
Source: TechCrunch