The Xeon 6 processor is reportedly faster and more power efficient than its forerunner, which enables it to effectively manage demanding data centres. To date, Intel has mostly hovered on the fringe of the global AI frenzy.

This new chip is the firm’s attempt to compete with AI trailblazers such as Nvidia and AMD and retain its prominence in the market. The industry saw tech titans such as Microsoft Corporation (MSFT) and Meta Platforms, Inc. (META) buy up as many Nvidia chips as possible in order to be at the forefront of the AI evolution.

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Approximately six months ago, Intel also unveiled its 5^th Gen Intel Xeon processors for data centres, and two months before that, the Gaudi 3 processor for AI training and positioning. At the Xeon 6 launch on Tuesday, the company also pointed out that its Gaudi 2 and Gaudi 3 AI accelerators are better priced than similar offerings from other companies. CNBC quoted Intel CEO Pat Gelsinger, who said:

Customers are looking for high-performance, cost-effective gen AI training and inferencing solutions. And they’ve started to turn to alternatives like Gaudi. They want choice. They want open software and hardware solutions and time to market solutions at dramatically lower TCOs [total cost of ownership].

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