Intel's Gaudi AI accelerator failed to reach its expected revenue target of $500 million, which sparked industry concern. The editor of Downcodes will conduct an in-depth analysis of the information disclosed by Intel CEO Pat Gelsinger on the third quarter 2024 earnings conference call, interpreting the reasons behind it and Intel's future strategic adjustments.
In the context of the rapid development of artificial technology, Intel's Gaudi AI accelerator faces huge challenges. Recently, Intel CEO Pat Gelsinger stated during the company's third quarter 2024 earnings conference call that Intel's expected Gaudi revenue target of US$500 million this year will not be achieved.
He admitted: "We will not achieve our 2024 revenue goal of $500 million." Although Intel has just launched its new Gaudi3 accelerator, Gelsinger pointed out that the overall adoption rate of Gaudi products is slower than expected, mainly due to the The product transformation from udi2 to Gaudi3 and the ease of use of the software have affected user acceptance.
Despite falling short of expectations, Gelsinger remains optimistic about the market's prospects. He said that market demand for high-performance solutions based on open standards remains strong, and Intel will continue to enhance Gaudi's value proposition. Gelsinger mentioned at the meeting that the industry’s current large-scale investment in AI chips is mainly focused on the training of cloud AI models. “Training is creating the weather model, not using it,” he said. This seems to imply that integrating AI into all chips, not just those in cloud computing, may become more important in the future.
According to the latest financial report, Intel's total revenue this quarter was US$13.3 billion, a year-on-year decrease of 6%, but an increase compared with the previous quarter. Despite this, Intel still faced huge losses, reaching $16.6 billion. The loss was primarily due to $18.5 billion in impairment and restructuring charges as part of Intel's strategic changes to improve profitability.
The company has previously announced a cost-cutting plan worth $10 billion and laid off more than 15,000 employees. At the same time, Intel also detailed some structural adjustments within the company in its financial report, including integrating the edge computing business into the client computing group responsible for desktop and notebook chips, and integrating the software team into the company's core business units. Gelsinger emphasized that Intel will focus on fewer projects, with the primary goal of maximizing the value of its x86 architecture in the client, edge and data center markets.
Intel's Gaudi AI accelerator target fell short of expectations, reflecting the intensity of competition in the AI market and the impact of product transformation and software ease of use on market acceptance. Intel's strategic adjustments and optimism about the future market deserve continued attention. The editor of Downcodes will continue to bring you the latest technology information.