Intel Corporation (NASDAQ:INTC) rose 1.8% in premarket trading Wednesday after Reuters reported that the company had unveiled a new AI processor for data centers, marking its latest push into a market currently led by NVIDIA and Advanced Micro Devices.
The new GPU, named Crescent Island, was introduced by Intel Chief Technology Officer Sachin Katti at the Open Compute Summit on Tuesday, according to the report. The chip is scheduled to launch next year and is designed to deliver high energy efficiency and strong AI inference performance, a key factor for large-scale data center operations.
Katti highlighted the chip’s value proposition, stating it aims to provide “the best token economics out there, the best performance per dollar.” Crescent Island will include 160 GB of memory, though it will rely on a slower type compared to the high bandwidth memory (HBM) used in rival chips from AMD and NVIDIA.
This development aligns with CEO Lip-Bu Tan’s broader plan to reinvigorate Intel’s AI strategy, following the shelving of earlier efforts like the Gaudi chip line and Falcon Shores processor. Intel has been under pressure to catch up as competitors benefit from a surge in global AI infrastructure spending.
Crescent Island builds on Intel’s existing consumer GPU architecture and is designed to support a wide array of AI inference applications, signaling the company’s commitment to reclaiming ground in the high-performance computing market.
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