Intel’s Gaudi 3 Challenges Nvidia’s H100 in AI Accelerator Market

Intel has launched its latest AI accelerator, the Gaudi 3, aiming to rival Nvidia’s H100. The Gaudi 3 boasts impressive generative AI performance, offering a cost-effective platform for running AI models. With a focus on performance, power efficiency, and price competitiveness, Intel is positioning the Gaudi 3 as a compelling alternative in the AI accelerator market.

At the Intel Vision conference, Intel revealed that the Gaudi 3 delivers 40% better performance than the Nvidia H100, with significantly improved power efficiency. StabilityAI, a user of the Gaudi accelerators, praised the platform for its price performance, reduced lead time, and ease of use, highlighting its appeal in a market experiencing high demand and limited supply.

The Gaudi 3, built on TSMC’s 5nm manufacturing node, features 128GB of HBM3E memory and offers twice the Ethernet performance of its predecessor. While it lacks the 4-bit math operators found in Nvidia’s B100, which can double performance for inference processing, the Gaudi 3’s Ethernet support simplifies adoption for enterprises.

Intel’s focus on performance and efficiency, coupled with a lower price point, positions the Gaudi 3 as a strong competitor in both training and inference processing. However, challenges remain in scalability and future roadmap development. Nvidia’s upcoming GB200 NVL72 rack, boasting significant advantages in inference processing, presents a formidable competitor for cloud service providers (CSPs).

Despite these challenges, Intel has made significant strides with the Gaudi 3, offering it in three form factors (PCIe, mezzanine card, and eight-accelerator baseboard) with samples available now and volume shipments expected in Q3. With support from major OEMs, including SuperMicro, HPE, Dell Technologies, and Lenovo, Intel is poised to capture a significant share of the AI accelerator market.

In conclusion, Intel’s Gaudi 3 represents a major step forward in AI acceleration, offering competitive performance, efficiency, and pricing. While challenges remain, particularly in scalability and future roadmap alignment, Intel’s strategic approach and partnerships position the Gaudi 3 as a compelling choice for enterprises and emerging sovereign data centers.