In a surprising twist, Intel announced on Thursday that its Falcon Shores GPU for AI and HPC applications will not be released to the market but will remain an internal test processor to develop the hardware and software foundations for its successor, codenamed Jaguar Shores. This decision makes Intel's struggling Gaudi 3 processor, which has suffered from limited uptake amid the company's disclosed software issues, the company's only viable solution for AI applications for the next two years. Meanwhile, the company will work on developing rack-scale solutions, the only true way to compete with AI behemoth Nvidia.
"Many of you heard me temper expectations on Falcon Shores last month," interim co-CEO Michelle Johnston Holthaus said during the company's earnings call on Thursday. "Based on industry feedback, we have decided to leverage Falcon Shores as an internal test chip. Without bringing it to market, we will support our efforts to develop a system-level solution at rack scale with Jaguar Shores to address the AI data center more broadly."
