Key points:

  • The release of Xeon 6 is a strategic move for Intel, which has been losing ground in the market recently.
  • The new Xeon 6 processors come in two variants: an “efficiency” model and a “performance” version.
  • Gaudi 3 is positioned as a more affordable solution compared to competitors’ offerings.

In an effort to regain its dominant position in the server solutions market, Intel on Tuesday announced the release of its next generation Xeon processors. These new chips are expected to give Intel a significant competitive advantage.

In addition, Intel announced a price cut for its Gaudi 3 AI accelerator chips. The new pricing positions Gaudi 3 as a more affordable solution than competitors’ offerings, making AI technologies more accessible to a wider range of consumers.

Priority of the new Intel processor model

The release of the sixth generation Xeon server processors is a strategically important step for Intel, which has recently been losing ground in the data center market in favor of its main competitor, Advanced Micro Devices (AMD).

According to Mercury Research, Intel’s share of the x86 server processor market fell 5.6 percentage points over the past year to 76.4%, while AMD’s share rose to 23.6%.

The new Xeon 6 processors are presented in two main versions: a more powerful and productive version and an “efficient” model, positioned by Intel as a replacement for previous generation chips. The “efficient” Xeon 6 model, designed for media, web and database computing, delivers the same processing power as second-generation Xeon chips but requires 67% fewer server racks.

Other Intel innovations

At a briefing for journalists, Intel presented information about the prices and characteristics of its new products.

The Gaudi 3 accelerator kit, which includes eight AI chips, will retail for around $125,000. That’s $60,000 more than the previous generation Gaudi 2, which has a list price of $65,000.

In April, Intel already revealed details about the Gaudi 3 AI chip, positioning it as a more affordable and efficient alternative to Nvidia H100 chips.

On Tuesday, Intel also announced its next-generation laptop chip called Lunar Lake. The new chip consumes 40% less power and contains a more powerful artificial intelligence processor. Intel plans to begin shipping Lunar Lake in the third quarter.

The release of the sixth-generation chip was delayed by a year as the company decided to use a different manufacturing process.