News Intel says it will miss its AI goals with Gaudi 3 — unbaked software leaves Intel's $500 million AI goal unachievable as competitors rake in billions

[Admin]

Software issues slowed the sales ramp of Intel's Gaudi 3 accelerator for AI.

Intel says it will miss its AI goals with Gaudi 3 — unbaked software leaves Intel's $500 million AI goal unachievable as competitors rake in billions : Read more

 

[Pierce2623]

As cheap as Gaudi was, even compared to AMD instinct parts, the software must have been monumentally bad. I mean if you could easily run the standard well known LLMs on it, that would’ve been enough to meet their sales targets. According to their benchmarks, two $2000 dollar chips should’ve been roughly competitive with a $10,000 chip from AMD or a $50,000 chip from Nvidia

 

[JRStern]

As cheap as Gaudi was, even compared to AMD instinct parts, the software must have been monumentally bad. I mean if you could easily run the standard well known LLMs on it, that would’ve been enough to meet their sales targets. According to their benchmarks, two $2000 dollar chips should’ve been roughly competitive with a $10,000 chip from AMD or a $50,000 chip from Nvidia

Typically the problem is not that it's monumentally bad but monumentally unfinished, often not actually started, or perhaps they have no actual idea of how to go about it, aka vaporware.

 

[JRStern]

"unbaked", is that how we say it now?
Intel: SMH

I'm actually just the kind of code monkey they need on something like this, maybe I should have volunteered, like five years ago, even before they acquired Habana. Especially now that we can do stuff remote. Harrumph. But even I couldn't turn it out in two weeks, LOL.

 

[Pierce2623]

Typically the problem is not that it's monumentally bad but monumentally unfinished, often not actually started, or perhaps they have no actual idea of how to go about it, aka vaporware.

Fair enough.

 

[baboma]

Those interested in Intel's business issues should peruse Ian Cutress' Substack piece covering INTL's latest quarter call. It provides a more professional and comprehensive analysis than the clickbait hit pieces here on THW or typical blogs. (Yes, there's a reason why Gaudi 3 software was delayed.)

https://morethanmoore.substack.com/p/intel-q32024-financials-halloween

Ian Cutress & Ryan Smith's coverage of AMD's 3Q finacials:

https://morethanmoore.substack.com/p/amd-q32024-financials

Be sure to read the analyst Q&A portion at the bottom of each piece for additional insight.

 

[KraakBal]

Intel just can't focus on future tech. They haven't started anything cool since Optane, and that was killed. Stop trying to compete, come up with ehat people want in 3-5 years

 

[Pierce2623]

Those interested in Intel's business issues should peruse Ian Cutress' Substack piece covering INTL's latest quarter call. It provides a more professional and comprehensive analysis than the clickbait hit pieces here on THW or typical blogs. (Yes, there's a reason why Gaudi 3 software was delayed.)

https://morethanmoore.substack.com/p/intel-q32024-financials-halloween

Ian Cutress & Ryan Smith's coverage of AMD's 3Q finacials:

https://morethanmoore.substack.com/p/amd-q32024-financials

Be sure to read the analyst Q&A portion at the bottom of each piece for additional insight.

The most interesting part of that article is where Cuttress says 10nm/7 can’t be used for outside customers. Why? It’s the most performant process in the world basically, if you take efficiency out of the equation. I also noticed Pat said Xeon is in 70% of AI clusters. Three years ago it would’ve been 90%, so I probably would’ve just kept that number to myself as it’s basically advertising market share losses. It’s crazy to think that AMD went from basically 0% market to 30% in a few years.

 

[jheithaus]

The most interesting part of that article is where Cuttress says 10nm/7 can’t be used for outside customers. Why? It’s the most performant process in the world basically, if you take efficiency out of the equation. I also noticed Pat said Xeon is in 70% of AI clusters. Three years ago it would’ve been 90%, so I probably would’ve just kept that number to myself as it’s basically advertising market share losses. It’s crazy to think that AMD went from basically 0% market to 30% in a few years.

I think this is the big open question. It hangs over the IDM 2.0 model, and it is likely why Pat was fired. Why can’t intel 7 be used by outside customers. This process sizzles with the 14900k at or near chart top in the most demanding realm of logic semi. You bought the equipment. The fabs are stocked. You should be dumping excess wafers to mediatek, Sony, microchip, analog, Broadcom, whoever will have them. Only TSMC has a better commercial process on offer. Intel foundry should be taking market share, against GF, Samsung, and the remainder. However, as a TSMC customer, I know why Intel 7 has no customers. When you call Intel for pricing…..it’s always crazy unrealistic. The foundry at Intel doesn’t want the work.