- Intel’s standalone programmable chip division, now named Altera, eyes the AI market.
- Altera’s chips cater to AI applications and computing tasks between bespoke processors and generalized AI chips.
- Intel plans a stock offering for Altera within 2-3 years.
- Programmable chips are expected to fill a niche in the evolving AI hardware landscape.
- Market estimates for programmable chips in 2023 ranged from $8-$10 billion.
- The lack of comprehensive third-party data obscures the true potential of programmable chips.
- Intel’s Agilex chips, manufactured by Intel Foundry, play a pivotal role in the company’s strategy.
Main AI News:
The burgeoning realm of artificial intelligence presents a promising avenue for Intel’s recently established independent programmable chip division, according to CEO Sandra Rivera.
Having transitioned into a standalone entity earlier this year, Intel’s programmable chip division unveiled its future trajectory and its official moniker on Thursday: “Altera, an Intel company.”
The corporation intends to initiate a stock offering for Altera within the next two to three years.
Rivera emphasized that Altera’s programmable chip designs cater to AI applications and computational functions situated between the bespoke processors engineered by major cloud computing entities such as Amazon.com and the more generalized AI chips produced by Nvidia.
Given the evolving landscape of AI hardware requirements, Rivera asserted that programmable chips are poised to occupy an expanding niche market.
“(Programmable chips are) perpetually at the vanguard of innovation, and it is incumbent upon us to maintain our position at the forefront,” Rivera remarked. “Facilitating seamless transitions is integral to our mission.”
Although the market projection for programmable chips in 2023 hovered around $8-$10 billion, the precise scope of the opportunity remains elusive due to a dearth of comprehensive third-party data, Rivera acknowledged.
“I believe its potential surpasses current perceptions,” she stated, citing the multifaceted roles played by programmable chips across various stages of the AI workflow.
Intel’s existing Agilex series of programmable chips is manufactured by Intel Foundry, the corporation’s contract manufacturing division. While Rivera refrained from disclosing whether Intel Foundry would handle the forthcoming Agilex 3 chips, she expressed optimism about receiving preferential treatment akin to that accorded to other customers.
In a subsequent email correspondence, an Intel spokesperson affirmed that contract manufacturing clients may benefit from favorable pricing based on projected volumes, underscoring the prominent role of Intel business units as primary customers of Intel Foundry.
Conclusion:
Intel’s push into the standalone programmable chip market underscores its recognition of the burgeoning opportunities in AI. With Altera poised to address the evolving needs of AI applications, Intel aims to leverage its technological prowess to capture a significant share of this rapidly expanding market. However, uncertainties regarding market size and competition dynamics highlight the need for continued innovation and strategic positioning to capitalize on the full potential of programmable chips in the AI ecosystem.
