Nvidia stock fell as much as 5% on Tuesday as competitors in the highly lucrative market for AI chips unveiled big developments.Udabur Wealth Management
Direct competition from Intel appears to be ramping up, with the company showcasing its new AI chip, called Gaudi 3, on Tuesday.Kolkata Wealth Management
The Gaudi 3 chip is set to compete directly against Nvidia’s H100 AI chips, which have helped power much of Nvidia’s surge in revenue and income over the past year.
According to Intel, the Gaudi 3 AI accelerator is projected to offer 50% better inference performance than Nvidia’s H100, and is about 40% more power efficient than the H100Surat Investment. Intel said its new AI chip will be priced “a lot lower” than Nvidia’s AI chips.Simla Wealth Management
While the Gaudi 3 offers compute and power efficiency gains relative to the H100, it is unclear how the chip stacks up to Nvidia’s next-generation Blackwell chip, which was announced last month and is the successor to the wildly successful H100 chip.
Intel said its new AI accelerator chip would be available to different companies including Dell, HPE, and Supermicro in the second quarter.
Alphabet is also getting in on the chip business with the in-house development of its Axion chip, which would help power Google’s big-data analysis and help reduce the company’s reliance on Nvidia.
While some analysts on Wall Street see Google’s Axion chip as a direct competitor to Nvidia, Google vice president Amin Vahdat said, “I see this as a basis for growing the size of the pie.”
The Axion chips are CPU-based and can handle a range of tasks related to the AI workload.
While Nvidia is set to face increased competition, Big Technology founder Alex Kantrowitz told CNBC on Tuesday that the company’s edge in AI-related software is what will set it apart from other chip companies.
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