Intel has launched its sixth generation Xeon server processors and revealed its Gaudi 3 AI accelerator chips, aiming to regain its position in the data centre market. The new Xeon processors come in two versions: a high-performance model for complex AI computations and an efficiency model designed to reduce power consumption and server rack requirements significantly. Intel's market share in the data centre segment has been slipping, with AMD gaining ground due to Intel's previous manufacturing setbacks.

Intel's Gaudi 3 AI chips are notably priced lower than competitors, with an eight-chip accelerator kit costing about$125,000 compared to over$300,000 for a similar Nvidia setup. Intel CEO Pat Gelsinger highlighted the cost-effectiveness of the Gaudi 3 chips during a presentation at the Computex trade fair, emphasising their competitive edge. The efficiency model of the Xeon chips is available immediately, while the performance model will be released in the third quarter.

In addition to server processors, Intel introduced its next-generation laptop chip, Lunar Lake, which promises a 40% reduction in power usage and enhanced AI processing capabilities. Set to ship in the third quarter, Lunar Lake is part of Intel's broader strategy to dominate the AI PC market. Future advancements include the Arrow Lake chip next year and Panther Lake in 2025, showcasing Intel's ongoing innovation and collaboration with TSMC to enhance its technology.