- Nvidia’s stock experienced a significant drop of up to 5% on Tuesday amidst the escalating competition in the AI chip market.
- Intel made a notable announcement introducing its latest AI device, Gaudi 3, directly challenging Nvidia’s leading AI cards.
- Alphabet, on the other hand, revealed its proprietary cards aimed at mitigating the expenses linked to AI operations.
Amidst the dynamic landscape of IoT card competition, Nvidia witnessed a 5% decline in its stock value on Tuesday.
The competitive stance of Intel appears to be strengthening, as evidenced by the unveiling of their cutting-edge AI innovation, Gaudi 3.
Intel’s Gaudi 3 device is positioned to rival Nvidia’s acclaimed H100 AI cards, which have notably contributed to Nvidia’s recent financial upswing.
Intel claims that the Gaudi 3 AI pedal boasts a 50% enhanced inference efficiency compared to Nvidia’s H100, along with a 40% increase in energy efficiency. Moreover, Intel hinted at pricing the new AI device slightly below Nvidia’s offerings.
While Intel’s Gaudi 3 showcases advancements in performance and efficiency over the H100, its direct comparison to Nvidia’s upcoming Blackwell microprocessor, the successor to the popular H100 chip unveiled last month, remains ambiguous.
In the upcoming quarter, Dell, HPE, and Supermicro are expected to integrate Intel’s latest AI pedal chip into their systems.
Alphabet has also ventured into the chip domain with the development of its Axion device, aimed at bolstering Google’s big data analytics capabilities and reducing dependence on Nvidia.
Although some analysts foresee Google’s Axion device as formidable competition for Nvidia, Google’s Vice President, Amin Vahdat, views it as a catalyst for expanding the market.
The CPU-based Beam chips from Google can efficiently handle various AI-related tasks.
Tech expert Alex Kantrowitz highlighted to CNBC on Tuesday that Nvidia’s stronghold in AI technology sets it apart from competitors, despite the mounting competition. Nvidia’s software ecosystem is a pivotal factor that keeps developers engaged, unlike Intel, which lacks a similar software advantage, potentially limiting developer adoption according to Kantrowitz.
