Intel has decided not to release its Falcon Shores AI chip to the market

During Intel's fourth-quarter earnings call on Thursday, co-CEO Michelle Johnston Holthaus announced the company's decision to cancel the Falcon Shores AI chip. Instead, it will be repurposed as an internal test chip, while Intel shifts its focus to Jaguar Shores for AI data center solutions. Holthaus expressed her concern about the company's current position in the cloud-based AI data center market, stating, "AI data center ... is an attractive market for us, but I am not happy with where we are today. We're not yet participating in a meaningful way." To address this, she emphasized the need to simplify Intel's roadmap and concentrate resources effectively.

Jaguar Shores is now viewed as a significant opportunity for Intel to develop a comprehensive system-level solution at rack scale, which aims to tackle the broader AI data center landscape. Holthaus had previously tempered expectations for Falcon Shores, suggesting it was merely an "iterative" step from the company’s earlier AI data center chip, Gaudi 3. She noted, "One of the things that we've learned from Gaudi is that it's not enough to just deliver the silicon. Falcon Shores will assist us in enhancing the system, networking, and memory components. However, what customers truly desire is a full-scale rack solution, which we aim to achieve with Jaguar Shores."

Holthaus highlighted the importance of understanding customers' challenges, particularly the need to reduce costs and improve compute efficiency. "A one-size-fits-all approach will not work," she said, recognizing the potential to leverage Intel's core assets in innovative ways to offer a compelling total cost of ownership across the spectrum.dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw dlw