Intel CEO Pat Gelsinger has one other robust name to make, this time in regards to the firm’s Accelerated Computing Methods and Graphics (AXG) enterprise tasked with the event of discrete graphics processing items (GPUs) and high-performance computing (HPC) accelerators. Whereas the scars of Intel’s disastrous second-quarter outcomes and closure of the Optane reminiscence enterprise are nonetheless recent, a brand new report from John Peddie Analysis calls its GPU enterprise outcomes embarrassing.
Intel’s AXG group, fashioned in 2016, has consumed a hefty $3.5 billion funding whereas lagging behind rivals AMD and Nvidia. It’s vital to notice that even the GPU provide disaster throughout 2021 and early 2022 couldn’t bolster Intel’s GPU fortunes. Throughout this time, the demand for GPUs peaked within the crypto-currency mining functions.
So, there’s been chatter amongst trade observers in regards to the imminent $3.5 billion write-off on the AXG unit, resulting in the closure of this non-performing GPU enterprise. On the similar time, nonetheless, one other opinion is that Intel will go for a cost- and mission-optimization effort first as a result of GPUs are a must have merchandise alongside CPUs.
And right here comes the dilemma. The GPUs mark a strategic marketplace for Intel within the rising AI, machine studying, and HPC markets. A hybrid recipe of CPUs and GPUs can be crucial for edge computing designs serving the Web of Issues (IoT) functions.
Nonetheless, can the corporate afford to maintain shedding cash? In accordance with graphics market researcher Jon Peddie, Intel has missed the bus on scale and time to market. Furthermore, it’s working in a hostile GPU market with a lot stronger AMD and Nvidia in addition to 4 extremely formidable startups.
Intel’s Gelsinger hasn’t shied away from axing non-performing companies akin to Optane and McAfee. Nonetheless, the six companies that Intel has lately closed had been identified to have collectively misplaced $1.5 billion, in comparison with the colossal $3.5 billion losses coming from AXG alone.
Whereas the rumor mill has already been hinting that the celebration is over for the AXG unit, it’s a tricky name for Gelsinger.
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