Intel has canceled production of its Falcon Shores artificial intelligence (AI) chip after seeing the failure of its previously launched Gaudi 3 chip. Gaudi 3 failed to meet Intel's previously targeted $500 million in sales. At the same time, AMD is targeting j$7 billion and NVIDIA is targeting $195 billion for their data center AI chip sales.
Falcon Shores will be used only as an internal test chip to develop the next generation of AI chips, namely Jaguar Shores. The realignment of products offered by Intel is in line with the company's new direction to return to profitability following last year's failure. As a result of the losses, Pat Gelsinger was forced to resign.
In its Q4 financial report published yesterday, Intel recorded a 7% year-on-year decline in revenue with the data center and AI businesses recording a 3% year-on-year decline.