Intel aims to reclaim data centre market share with new Xeon chip

• Aims to outperform its rivals and appeal to a broad range of customers seeking powerful and efficient computing solutions.

Intel unveiled its latest Xeon server processors on Tuesday with the aim of reclaiming market share in data centres.

The introduction of the sixth generation Xeon chips is a vital move for Intel, which has been facing tough competition from AMD in this sector. Despite recent setbacks in Intel’s manufacturing processes, the company is determined to regain its foothold in the market.

The new Xeon 6 server processors offer two main variants – a more robust version and an energy-efficient model positioned as a successor to older-generation chips.

The efficiency model is particularly geared towards tasks such as media serving, web hosting, and database operations, promising substantial reductions in server rack requirements for equivalent computing power.

Intel’s CEO, Pat Gelsinger, highlighted the improved performance and reduced power consumption of the new processors at the Computex trade fair in Taipei.

“The higher-performance model is tailored for intensive computations required by complex AI algorithms and other demanding tasks.”

Notably, Intel also announced the pricing of its Gaudi 3 artificial intelligence accelerator chips, with the kit containing eight AI chips priced at $125,000. This price point significantly undercuts competitors, positioning Intel favourably in the market.

Overall, Intel’s strategic moves reflect a concerted effort to revitalise its position in the data centre market. With the new Xeon processors and competitively priced AI accelerators, Intel aims to outperform its rivals and appeal to a broad range of customers seeking powerful and efficient computing solutions.