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<!DOCTYPE html><html lang="en"><head><meta charSet="utf-8"/><meta name="twitter:card" content="summary_large_image"/><meta name="twitter:site" content="@verge"/><meta property="fb:app_id" content="549923288395304"/><meta property="og:site_name" content="The Verge"/><meta name="viewport" content="width=device-width, initial-scale=1, shrink-to-fit=no"/><meta name="apple-mobile-web-app-title" content="Verge"/><meta name="google-site-verification" content="IucFf_TKtbFFH8_YeFyEteQIwYPdANM1R46_U9DpAr4"/><link rel="alternate" type="application/rss+xml" title="The Verge" href="/rss/index.xml"/><title>Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal - The Verge</title><meta name="robots" content="index,follow,max-image-preview:large"/><meta name="description" content="Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. "/><meta property="og:title" content="Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal"/><meta property="og:description" content="Meanwhile, Nvidia is raking in multiple tens of billions."/><meta property="og:url" content="https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal"/><meta property="og:type" content="article"/><meta property="article:published_time" content="2024-10-31T22:06:53.547Z"/><meta property="article:modified_time" content="2024-10-31T22:06:53.547Z"/><meta property="og:image" content="https://cdn.vox-cdn.com/thumbor/2TXoZ5R4KhhQLa0yZmFvyl4VwIY=/0x0:1648x927/1200x628/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg"/><meta property="og:image:type" content="image/jpeg"/><meta property="og:image:width" content="1200"/><meta property="og:image:height" content="628"/><link rel="canonical" href="https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal"/><meta property="author" content="Sean Hollister"/><meta property="fediverse:creator" content="@seanhollister@mastodon.world"/><meta name="parsely-type" content="post"/><meta name="parsely-title" content="Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal"/><meta name="parsely-link" content="https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal"/><meta name="parsely-image-url" content="https://cdn.vox-cdn.com/thumbor/2TXoZ5R4KhhQLa0yZmFvyl4VwIY=/0x0:1648x927/1200x628/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg"/><meta name="parsely-pub-date" content="2024-10-31T22:06:53.547Z"/><meta name="parsely-section" content="front-page"/><meta name="parsely-tags" content="verge,front-page,intel,tech,earnings,news,stream-23822227"/><meta name="parsely-author" content="Sean Hollister"/><script type="application/ld+json">{"@context":"http://schema.org/","@type":"NewsArticle","headline":"Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal","description":"Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year.","datePublished":"2024-10-31T22:06:53.547Z","dateModified":"2024-10-31T22:06:53.547Z","thumbnailUrl":"https://cdn.vox-cdn.com/thumbor/BQykMR_45cPlf8i_9kh5MdsAyYg=/0x0:1648x927/1400x788/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","author":[{"@type":"Person","name":"Sean Hollister","url":"https://www.theverge.com/authors/sean-hollister"}],"publisher":{"@type":"Organization","name":"The Verge","logo":{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/uploads/chorus_asset/file/24015294/verge_duet_google_news.png","width":250,"height":50}},"image":[{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/BQykMR_45cPlf8i_9kh5MdsAyYg=/0x0:1648x927/1400x788/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":788},{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/j2-IH4JtjczWWxRGrj6U049Ozvs=/0x0:1648x927/1400x1050/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":1050},{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/lLgl28r0wW73d_LmrytKshS2Fxg=/0x0:1648x927/1400x1400/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":1400}],"url":"https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal","articleBody":"Nvidia made a fortune on the AI boom. AMD’s rival AI chip became the fastest ramping product in its history, already pulling in $1 billion per quarter and inspiring AMD to remake itself as an AI company too. But Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI in 2024, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. \n\n“We will not achieve our target of $500 million in revenue for Gaudi in 2024,” CEO Pat Gelsinger just said on the company’s Q3 2024 earnings call today. \n\nThough Intel just launched its recent Gaudi 3 accelerator this past quarter, said Gelsinger, “the overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use.”\n\nDespite the missed goal, Gelsinger says “we remain encouraged by the market available to us. There is clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”\n\nLater on the call, Gelsinger seemingly had some sour grapes to share, pointing out how so far, the industry’s huge spend on AI chips has been focused on training AI models in the cloud. “Training is creating the weather model, not using it,” he says, suggesting once again that putting AI into all the chips, not just ones in the cloud, might be more important in the long run.\n\nIntel reported $13.3 billion in revenue in quarterly earnings today, down 6 percent year over year but up compared to last quarter — and losses of a whopping $16.6 billion. But those losses were based on $18.5 billion of impairments and restructuring charges, the cost of Intel’s decision to rework itself for more profitability in the future. \n\nLast quarter it announced a $10 billion cost reduction plan and over 15,000 layoffs, and it’s now detailing some of the structural shifts inside the company too — including moving its edge computing business into the Client Computing Group that generally handles its desktop and laptop chips, and integrating its software teams into the company’s core business units. \n\nGelsinger says Intel will “focus on fewer projects, with the top priority to be to maximize the value of our x86 franchise across the client, edge, and data center markets.”\n"}</script><link rel="preload" as="image" imageSrcSet="https://duet-cdn.vox-cdn.com/thumbor/0x0:1648x927/16x11/filters:focal(824x464:825x465):format(webp)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg 16w, 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tracking-12 text-blurple"><a class="hover:shadow-underline-inherit" href="/intel">Intel</a><span class="px-6">/</span></li><li class="inline font-polysans-mono text-12 font-medium uppercase tracking-12 text-blurple"><a class="hover:shadow-underline-inherit" href="/tech">Tech</a></li></ul><h1 class="mb-28 hidden max-w-[900px] font-polysans text-45 font-bold leading-100 selection:bg-franklin-20 lg:block">Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal</h1><span class="sticky-nav-trigger"></span><div class="flex flex-col lg:flex-row-reverse lg:justify-end"><div class="flex-col lg:flex lg:ml-40"><div class="mb-24 grow"><h1 class="inline font-polysans text-22 font-bold leading-110 md:text-33 lg:hidden">Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal</h1><span class="font-polysans text-22 font-light leading-110 md:text-30 lg:block"><span class="text-blurple"> / </span><h2 class="inline selection:bg-franklin-20">AI is already billions or tens of billions to other chipmakers, but not necessarily Intel.</h2></span></div><div><div class="mb-16 w-[200px] border-t border-gray-bd lg:hidden"></div><div class="mb-2 text-blurple [&>p>span:first-child]:text-gray-13 [&_.duet--article-byline-and]:text-gray-13"><p class="duet--article--article-byline max-w-[550px] font-polysans text-12 leading-120"><span>By</span> <span><span class="duet--article-byline-and"></span> <span class="font-medium"><a class="hover:shadow-underline-inherit" href="/authors/sean-hollister">Sean Hollister</a></span><span class="text-gray-13">, <span class="duet--article--dangerously-set-cms-markup">a senior editor and founding member of The Verge who covers gadgets, games, and toys. He spent 15 years editing the likes of CNET, Gizmodo, and Engadget.</span></span></span></p></div><div class="duet--article--date-and-comments mb-20 inline-block font-polysans text-12 text-gray-5a"><time dateTime="2024-10-31T22:06:53.547Z" class="duet--article--timestamp font-polysans text-12"> Oct 31, 2024, 10:06 PM UTC</time></div><div class="mb-24 flex lg:mb-0 lg:mb-0"><div class="flex"><div><h2 class="sr-only">Share this story</h2><ul class="duet--article--share-buttons flex leading-[0]"><li class="mr-8"><div class="relative flex items-center"><button aria-label="Copy link" class="rounded-full bg-transparent transition shadow-border-gray-d3 hover:bg-blurple hover:shadow-border-blurple"><svg width="30" height="30" class="transition fill-blurple hover:fill-white" viewBox="0 0 30 30" xmlns="http://www.w3.org/2000/svg"><path d="M13.7876 20.18C12.6943 21.2733 10.9133 21.2733 9.81998 20.18C8.72669 19.0867 8.72666 17.3056 9.81998 16.2123L12.0243 14.0081C13.1176 12.9147 14.8986 12.9147 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style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover"/></span></figure></div></div></div></div><div class="relative md:mx-auto md:flex md:max-w-container-md lg:max-w-none"><div id="zephr-anchor" class="duet--article--article-body-component-container clearfix sm:ml-auto md:ml-100 md:max-w-article-body lg:mx-100"><div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Nvidia made a fortune on the AI boom. AMD’s rival AI chip became the fastest ramping product in its history, <a href="/2024/7/30/24209938/amd-q2-2024-earnings-datacenter-ai-revenue">already pulling in $1 billion per quarter</a> and inspiring AMD to remake itself <a href="/2024/10/29/24283263/amd-radeon-rdna-4-gpus-2025#:~:text=She%20says%20that%20after%20spending%2010%20years%20turning%20AMD%20around%2C%20her%20next%20task%20is%20to%20%E2%80%9Cmake%20AMD%20the%20end%2Dto%2Dend%20AI%20leader.%E2%80%9D">as an AI company</a> too. But Intel, which suggested <a href="https://www.reuters.com/technology/inside-intel-ceo-pat-gelsinger-fumbled-revival-an-american-icon-2024-10-29/">it would pull in $1 billion, even $2 billion</a> on the back of AI in 2024, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. </p></div><div class="duet--article--article-body-component clear-both block md:float-left md:mr-30 md:w-[320px] lg:-ml-100"><div class="duet--recirculation--related-list mb-40"><h3 class="mb-16 font-polysans-mono text-14 font-medium leading-120 -tracking-1 text-blurple after:pl-8 after:content-['/']">Related</h3><ul class="list-disc pl-18 font-polysans text-16 font-medium leading-110 marker:text-franklin"><li class="mb-16 pl-12"><a class="hover:shadow-underline-black" href="/2024/9/16/24246599/intel-foundry-independent-spinoff">Intel’s big turnaround plan includes spinning off its chipmaking business</a></li><li class="mb-16 pl-12"><a class="hover:shadow-underline-black" href="/2024/8/1/24210656/intel-is-laying-off-over-10000-employees-and-will-cut-10-billion-in-costs">Intel is laying off over 15,000 employees and will stop ‘non-essential work’</a></li><li class="mb-16 pl-12"><a class="hover:shadow-underline-black" href="/2024/10/15/24271080/amd-intel-x86-advisory-group-lenovo-arm">AMD, Intel, and a slew of tech companies are teaming up to fend off ARM chips</a></li><li class="mb-16 pl-12"><a class="hover:shadow-underline-black" href="/2024/9/20/24249949/intel-qualcomm-rumor-takeover-acquisition-arm-x86">Qualcomm wants to buy Intel</a></li></ul></div></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">“We will not achieve our target of $500 million in revenue for Gaudi in 2024,” CEO Pat Gelsinger just said on the company’s Q3 2024 earnings call today. </p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Though <a href="/2024/4/9/24125308/intel-launches-new-ai-accelerator-to-take-on-nvidias-h100">Intel just launched its recent Gaudi 3 accelerator</a> this past quarter, said Gelsinger, “the overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use.”</p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Despite the missed goal, Gelsinger says “we remain encouraged by the market available to us. There is clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”</p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Later on the call, Gelsinger seemingly had some sour grapes to share, pointing out how so far, the industry’s huge spend on AI chips has been focused on training AI models in the cloud. “Training is creating the weather model, not using it,” he says, <a href="/2023/7/27/23810360/intel-pat-gelsinger-ai-every-platform-promise">suggesting once again</a> that putting AI into all the chips, not just ones in the cloud, might be more important in the long run.</p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Intel reported $13.3 billion in revenue in quarterly earnings today, down 6 percent year over year but up compared to last quarter — and losses of a whopping $16.6 billion. <a href="/2024/10/31/24284874/intels-restructuring-bill-has-come-due-heres-how-much-its-costing">But those losses were based on $18.5 billion of impairments</a> and restructuring charges, the cost of Intel’s decision to rework itself for more profitability in the future. </p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 dark:text-white dark:selection:bg-blurple [&_a:hover]:shadow-highlight-franklin dark:[&_a:hover]:shadow-highlight-blurple [&_a]:shadow-underline-black dark:[&_a]:shadow-underline-white">Last quarter it announced a $10 billion cost reduction plan and <a href="/2024/8/1/24210656/intel-is-laying-off-over-10000-employees-and-will-cut-10-billion-in-costs">over 15,000 layoffs,</a> and it’s now detailing some of the structural shifts inside the company too — including moving its edge computing business into the Client Computing Group that generally handles its desktop and laptop chips, and integrating its software teams into the company’s core business units. </p></div><div class="duet--article--article-body-component"><p class="duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 leading-160 -tracking-1 selection:bg-franklin-20 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href="/2024/12/2/24310983/intel-ceo-pat-gelsinger-retired">Intel’s CEO is out after only three years</a></h3><div class="pb-20 font-polysans text-11 lg:text-12"><time dateTime="2024-12-02T14:03:12.126Z" class="duet--article--timestamp font-polysans text-12"> Dec 2, 2024, 2:03 PM UTC</time></div></li><li class="relative pb-20 pl-24 last:pb-0 lg:pl-28 [&>div]:border-b [&>div]:border-black/30 [&>div]:last:border-b-0 [&>div]:last:border-l-0"><div class="absolute -left-10 top-0 h-20 w-20 rounded-full border border-black bg-black lg:top-8"></div><div class="absolute left-0 top-0 h-full border-l border-l-black lg:top-8"></div><h3 class="mb-10 font-polysans text-22 font-medium leading-100 -tracking-1 selection:bg-franklin-20 lg:text-34"><a class="hover:border-b" href="/2024/11/20/24301810/nvidia-blackwell-ai-b200-gb200-full-production-q3-2025-earnings">Nvidia says its Blackwell AI chip is ‘full steam’ ahead</a></h3><div class="pb-20 font-polysans text-11 lg:text-12"><time dateTime="2024-11-20T23:21:41.577Z" class="duet--article--timestamp font-polysans text-12"> Nov 20, 2024, 11:21 PM UTC</time></div></li><li class="relative pb-20 pl-24 last:pb-0 lg:pl-28 [&>div]:border-b [&>div]:border-black/30 [&>div]:last:border-b-0 [&>div]:last:border-l-0"><div class="absolute -left-10 top-0 h-20 w-20 rounded-full border border-black bg-black lg:top-8"></div><div class="absolute left-0 top-0 h-full border-l border-l-black lg:top-8"></div><h3 class="mb-10 font-polysans text-22 font-medium leading-100 -tracking-1 selection:bg-franklin-20 lg:text-34"><a class="hover:border-b" href="/2024/11/20/24301811/nvidia-just-made-nearly-20-billion-in-pure-profit-in-a-single-quarter">Nvidia just made nearly $20 billion in pure profit in a single quarter.</a></h3><div class="pb-20 font-polysans text-11 lg:text-12"><time dateTime="2024-11-20T21:35:52.330Z" class="duet--article--timestamp font-polysans text-12"> Nov 20, 2024, 9:35 PM UTC</time></div></li><li class="relative pb-20 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"},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyRelatedList","placement":{"id":"4ZZGr8","alignment":"HANG_LEFT"},"__isEntryBodyComponent":"EntryBodyRelatedList","items":[{"title":"Intel’s big turnaround plan includes spinning off its chipmaking business","url":"https://www.theverge.com/2024/9/16/24246599/intel-foundry-independent-spinoff"},{"title":"Intel is laying off over 15,000 employees and will stop ‘non-essential work’","url":"https://www.theverge.com/2024/8/1/24210656/intel-is-laying-off-over-10000-employees-and-will-cut-10-billion-in-costs"},{"title":"AMD, Intel, and a slew of tech companies are teaming up to fend off ARM chips","url":"https://www.theverge.com/2024/10/15/24271080/amd-intel-x86-advisory-group-lenovo-arm"},{"title":"Qualcomm wants to buy Intel","url":"https://www.theverge.com/2024/9/20/24249949/intel-qualcomm-rumor-takeover-acquisition-arm-x86"}]},{"__typename":"EntryBodyParagraph","placement":{"id":"8Tqf9L","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"“We will not achieve our target of $500 million in revenue for Gaudi in 2024,” CEO Pat Gelsinger just said on the company’s Q3 2024 earnings call today. "},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"33Jz6Z","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Though \u003ca href=\"https://www.theverge.com/2024/4/9/24125308/intel-launches-new-ai-accelerator-to-take-on-nvidias-h100\"\u003eIntel just launched its recent Gaudi 3 accelerator\u003c/a\u003e this past quarter, said Gelsinger, “the overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use.”"},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"vyE7ty","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Despite the missed goal, Gelsinger says “we remain encouraged by the market available to us. There is clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”"},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"9NLLMk","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Later on the call, Gelsinger seemingly had some sour grapes to share, pointing out how so far, the industry’s huge spend on AI chips has been focused on training AI models in the cloud. “Training is creating the weather model, not using it,” he says, \u003ca href=\"https://www.theverge.com/2023/7/27/23810360/intel-pat-gelsinger-ai-every-platform-promise\"\u003esuggesting once again\u003c/a\u003e that putting AI into all the chips, not just ones in the cloud, might be more important in the long run."},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"GcslmO","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Intel reported $13.3 billion in revenue in quarterly earnings today, down 6 percent year over year but up compared to last quarter — and losses of a whopping $16.6 billion. \u003ca href=\"https://www.theverge.com/2024/10/31/24284874/intels-restructuring-bill-has-come-due-heres-how-much-its-costing\"\u003eBut those losses were based on $18.5 billion of impairments\u003c/a\u003e and restructuring charges, the cost of Intel’s decision to rework itself for more profitability in the future. "},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"H7sBjq","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Last quarter it announced a $10 billion cost reduction plan and \u003ca href=\"https://www.theverge.com/2024/8/1/24210656/intel-is-laying-off-over-10000-employees-and-will-cut-10-billion-in-costs\"\u003eover 15,000 layoffs,\u003c/a\u003e and it’s now detailing some of the structural shifts inside the company too — including moving its edge computing business into the Client Computing Group that generally handles its desktop and laptop chips, and integrating its software teams into the company’s core business units. "},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"3hnP96","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":"Gelsinger says Intel will “focus on fewer projects, with the top priority to be to maximize the value of our x86 franchise across the client, edge, and data center markets.”"},"dropcap":false,"endmark":false,"lead":false},{"__typename":"EntryBodyParagraph","placement":{"id":"XJVoEK","alignment":null},"__isEntryBodyComponent":"EntryBodyParagraph","contents":{"html":""},"dropcap":false,"endmark":false,"lead":false}]},"liveCoverageStart":null,"slug":"2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal","layoutTemplate":"STANDARD","seoSchema":[{"@context":"http://schema.org/","@type":"NewsArticle","headline":"Intel’s Gaudi AI chips are far behind Nvidia and AMD, won’t even hit $500M goal","description":"Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year.","datePublished":"2024-10-31T22:06:53.547Z","dateModified":"2024-10-31T22:06:53.547Z","thumbnailUrl":"https://cdn.vox-cdn.com/thumbor/BQykMR_45cPlf8i_9kh5MdsAyYg=/0x0:1648x927/1400x788/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","author":[{"@type":"Person","name":"Sean Hollister","url":"https://www.theverge.com/authors/sean-hollister"}],"publisher":{"@type":"Organization","name":"The Verge","logo":{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/uploads/chorus_asset/file/24015294/verge_duet_google_news.png","width":250,"height":50}},"image":[{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/BQykMR_45cPlf8i_9kh5MdsAyYg=/0x0:1648x927/1400x788/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":788},{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/j2-IH4JtjczWWxRGrj6U049Ozvs=/0x0:1648x927/1400x1050/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":1050},{"@type":"ImageObject","url":"https://cdn.vox-cdn.com/thumbor/lLgl28r0wW73d_LmrytKshS2Fxg=/0x0:1648x927/1400x1400/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","width":1400,"height":1400}],"url":"https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal","articleBody":"Nvidia made a fortune on the AI boom. AMD’s rival AI chip became the fastest ramping product in its history, already pulling in $1 billion per quarter and inspiring AMD to remake itself as an AI company too. But Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI in 2024, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. \n\n“We will not achieve our target of $500 million in revenue for Gaudi in 2024,” CEO Pat Gelsinger just said on the company’s Q3 2024 earnings call today. \n\nThough Intel just launched its recent Gaudi 3 accelerator this past quarter, said Gelsinger, “the overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use.”\n\nDespite the missed goal, Gelsinger says “we remain encouraged by the market available to us. There is clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”\n\nLater on the call, Gelsinger seemingly had some sour grapes to share, pointing out how so far, the industry’s huge spend on AI chips has been focused on training AI models in the cloud. “Training is creating the weather model, not using it,” he says, suggesting once again that putting AI into all the chips, not just ones in the cloud, might be more important in the long run.\n\nIntel reported $13.3 billion in revenue in quarterly earnings today, down 6 percent year over year but up compared to last quarter — and losses of a whopping $16.6 billion. But those losses were based on $18.5 billion of impairments and restructuring charges, the cost of Intel’s decision to rework itself for more profitability in the future. \n\nLast quarter it announced a $10 billion cost reduction plan and over 15,000 layoffs, and it’s now detailing some of the structural shifts inside the company too — including moving its edge computing business into the Client Computing Group that generally handles its desktop and laptop chips, and integrating its software teams into the company’s core business units. \n\nGelsinger says Intel will “focus on fewer projects, with the top priority to be to maximize the value of our x86 franchise across the client, edge, and data center markets.”\n"}],"package":null,"url":"https://www.theverge.com/2024/10/31/24284860/intel-gaudi-wont-meet-500-million-goal","commentsClosed":false,"railComponents":[{"__typename":"EntryRailNewsletter","entryRailNewsletter":{"name":"Verge Deals","slug":"deals"}}],"dek":{"plaintext":"AI is already billions or tens of billions to other chipmakers, but not necessarily Intel."},"leadImage":{"defaultImageUrl":"https://cdn.vox-cdn.com/thumbor/2TXoZ5R4KhhQLa0yZmFvyl4VwIY=/0x0:1648x927/1200x628/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg","asset":{"title":null,"contentType":"image/jpeg"}},"seoDescription":{"plaintext":"Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. "},"socialDescription":{"plaintext":"Meanwhile, Nvidia is raking in multiple tens of billions."},"socialImage":null,"shouldUseHTMLNoindex":false,"shouldUseHTMLNofollow":false,"password":null,"additionalContributors":null,"_id":24048901,"leadComponent":{"__typename":"EntryLeadImage","standard":{"hideCredit":false,"asset":{"title":null},"caption":null,"credit":null,"variantUrl":"https://cdn.vox-cdn.com/thumbor/8Fbt70W5kZ5R4MM9wJtlY9vJ5zY=/0x0:1648x927/2000x1333/filters:focal(824x464:825x465)/cdn.vox-cdn.com/uploads/chorus_asset/file/25709064/newsroom_intel_gaudi_3_2.jpg.rendition.intel.web.1648.927.jpg"}},"liveCoverageEnd":null,"seoArticleBody":"Nvidia made a fortune on the AI boom. AMD’s rival AI chip became the fastest ramping product in its history, already pulling in $1 billion per quarter and inspiring AMD to remake itself as an AI company too. But Intel, which suggested it would pull in $1 billion, even $2 billion on the back of AI in 2024, now says it won’t even meet its more modest $500 million goal for its Gaudi AI accelerator this year. \n\n“We will not achieve our target of $500 million in revenue for Gaudi in 2024,” CEO Pat Gelsinger just said on the company’s Q3 2024 earnings call today. \n\nThough Intel just launched its recent Gaudi 3 accelerator this past quarter, said Gelsinger, “the overall uptake of Gaudi has been slower than we anticipated as adoption rates were impacted by the product transition from Gaudi 2 to Gaudi 3 and software ease of use.”\n\nDespite the missed goal, Gelsinger says “we remain encouraged by the market available to us. There is clear need for solutions with superior [total cost of ownership] based on open standards, and we are continuing to enhance the Gaudi value proposition.”\n\nLater on the call, Gelsinger seemingly had some sour grapes to share, pointing out how so far, the industry’s huge spend on AI chips has been focused on training AI models in the cloud. “Training is creating the weather model, not using it,” he says, suggesting once again that putting AI into all the chips, not just ones in the cloud, might be more important in the long run.\n\nIntel reported $13.3 billion in revenue in quarterly earnings today, down 6 percent year over year but up compared to last quarter — and losses of a whopping $16.6 billion. But those losses were based on $18.5 billion of impairments and restructuring charges, the cost of Intel’s decision to rework itself for more profitability in the future. \n\nLast quarter it announced a $10 billion cost reduction plan and over 15,000 layoffs, and it’s now detailing some of the structural shifts inside the company too — including moving its edge computing business into the Client Computing Group that generally handles its desktop and laptop chips, and integrating its software teams into the company’s core business units. \n\nGelsinger says Intel will “focus on fewer projects, with the top priority to be to maximize the value of our x86 franchise across the client, edge, and data center markets.”\n","stream":null,"visibleNetworkIds":[],"scheduledForExpirationAt":null}}}]},"uid":"Entry:52a877f5-ba62-4a62-92e6-ee6ecb9f1454","mostPopular":[{"author":{"fullName":"Jay Peters"},"publishDate":"2024-12-11T18:11:54","title":"Facebook, Instagram, and Threads are down","url":"https://www.theverge.com/2024/12/11/24318908/facebook-instagram-threads-down-outage-meta","uid":"0"},{"author":{"fullName":"David Pierce"},"publishDate":"2024-12-11T15:30:00","title":"Google launched Gemini 2.0, its new AI model for practically everything","url":"https://www.theverge.com/2024/12/11/24318444/google-gemini-2-0-flash-ai-model","uid":"1"},{"author":{"fullName":"Jay Peters"},"publishDate":"2024-12-11T13:10:36","title":"iOS 18.2 is rolling out now, adding ChatGPT integration and more Apple Intelligence tools","url":"https://www.theverge.com/2024/12/11/24317119/ios-18-2-apple-intelligence-chatgpt-genmoji","uid":"2"},{"author":{"fullName":"Kylie Robison"},"publishDate":"2024-12-09T18:16:33","title":"OpenAI has finally released Sora","url":"https://www.theverge.com/2024/12/9/24317092/openai-sora-text-to-video-ai-launch","uid":"3"},{"author":{"fullName":"Kylie Robison"},"publishDate":"2024-12-11T15:33:02","title":"Google’s AI enters its ‘agentic era’","url":"https://www.theverge.com/2024/12/11/24317436/google-deepmind-project-astra-mariner-ai-agent","uid":"4"}],"hasEditorialSponsorship":false,"navProps":{"campaignGroup":null,"stickyNav":true,"logoColor":"franklin","lightText":false}},"__N_SSP":true},"page":"/entry/standard/[uid]","query":{"uid":"Entry:52a877f5-ba62-4a62-92e6-ee6ecb9f1454"},"buildId":"DqOwM5nhps-wyG-h8eRQh","isFallback":false,"gssp":true,"appGip":true,"scriptLoader":[{"src":"https://theverge.coral.coralproject.net/assets/js/count.js?v=0","strategy":"lazyOnload","className":"coral-script","defer":true}]}</script></body></html>