Inside Intel's Strategy to Compete With Nvidia in the AI-Chip Market

Intel is known mainly for its dominance in the market for central processing units, the brains behind personal computers and the servers that run corporate networks and the internet. But it has lost some of its sheen for investors over the past decade as Nvidia gobbled up the market for chips specifically designed for AI purposes, especially chips that train AI models. Nvidia now accounts for about 80% of revenue from AI-specific computation in big data centers, according to Informa PLC's Omdia unit, a British research and consulting firm, although that doesn't account for any AI calculations done on Intel's general-purpose CPUs. That dominance in AI-specific chips helped Nvidia surpass Intel as the most valuable chip company in the U.S. by market capitalization two years ago. AI chips are a relatively small but rapidly growing segment of the overall chip market.