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When Intel (INTC) says it plans to get back into building graphics processing units, or GPUs, it’s little wonder that investors perk up at the news. At a Cisco (CSCO) AI Summit this week, Intel CEO Lip-Bu Tan confirmed that Intel is putting together a new GPU initiative, led by its newly hired chief GPU architect Eric Demers, as well as its long-time executive in its data center group, Kevork Kechichian. The message was clear: Intel is trying to get back into the world of accelerated computing, a space dominated by Nvidia (NVDA) and AMD (AMD).
The markets quickly responded by sending Intel shares up by as much as 4% before settling, a positive read on the news that Intel’s AI story is expanding beyond its CPUs and its ongoing talk of its role in a future world of chip manufacturing, or a foundry model. While Intel is indeed trying to get back into the world of GPUs, it’s not its first try, and investors are likely aware that there can be a long way to travel from a company announcement to relevance, especially in a space as quickly evolving as AI.
