Microsoft's new specifications for OEMs building AI PCs includes a requirement that they must have a Copilot key. To be recognized as an AI PC, OEM partners must also provide a combination of hardware and software including a Neural Processing Unit (NPU), the latest CPUs and GPUs, and access to Copilot. It is unclear what OEMs will get in return for adhering to Microsoft's AI PC definition. Intel recognizes some laptops without the Copilot key as AI PCs due to their integrated NPUs.

Intel gave the first architectural details of its Gaudi 3 third-generation AI processor at Vision 2024 this week in Phoenix, Arizona. Gaudi 3 is made up of two identical silicon dies, each with a central region of 48 megabytes of cache memory, joined by a high-bandwidth connection, surrounded by four engines for matrix multiplication and 32 programmable units called tensor processor cores. It produces double the AI compute of Gaudi 2 using 8-bit floating-point infrastructure. It also provides a fourfold boost for computations using the BFloat 16 number format.

The U.S. Department of Commerce has proposed granting Intel up to $8.5 billion under the CHIPS and Science Act to support semiconductor projects in multiple states. This funding aims to bolster U.S. chip manufacturing, develop critical technologies like AI, and create thousands of jobs. Intel's planned $100 billion investment in expansion is one of the largest in U.S. semiconductor history.

Intel has announced its new Gaudi 3 AI processors, claiming up to 1.7X the training performance, 50% better inference, and 40% better efficiency than Nvidia's H100 processors at a lower cost.

Intel has announced its new Gaudi 3 AI processors, claiming up to 1.7X the training performance, 50% better inference, and 40% better efficiency than Nvidia's H100 processors at a lower cost.

Intel gave the first architectural details of its Gaudi 3 third-generation AI processor at Vision 2024 this week in Phoenix, Arizona. Gaudi 3 is made up of two identical silicon dies, each with a central region of 48 megabytes of cache memory, joined by a high-bandwidth connection, surrounded by four engines for matrix multiplication and 32 programmable units called tensor processor cores. It produces double the AI compute of Gaudi 2 using 8-bit floating-point infrastructure. It also provides a fourfold boost for computations using the BFloat 16 number format.

Intel Foundry has completed assembly of the first commercial High-NA EUV lithography machine, an advancement critical for its 14A process node R&D targeted for 2025. The High-NA tool, by ASML, enables smaller feature printing and up to 2.9X transistor density improvement. Intel's early adoption of this technology aims to overcome past delays and regain leadership in semiconductor process technology.

Intel has presented the industry's first fully integrated optical compute interconnect (OCI) chiplet designed to significantly boost high-bandwidth data interconnect performance. Essential for growing AI demands, the milestone represents a step forward in silicon photonics, combining integrated circuits with lasers to enhance data transfer rates and support AI infrastructure scaling. The OCI chiplet aims to overcome the limitations of current electrical I/O interconnects by enabling higher bandwidth and longer-distance data transmission.

Intel is downsizing its workforce by over 15 percent as part of a new cost savings plan for 2025. The $10 billion cost saving plan will mean a headcount reduction of greater than 15,000 roles. Intel plans to reduce its R&D and marketing spending by billions each year through 2026, reduce capital expenditures by more than 20 percent this year, restructure to stop non-essential work, and review all active projects and equipment to make sure it's not spending too much. The company recently reported a loss of $1.6 billion for Q2, which is substantially more than the $437 million it lost the previous quarter.

Intel's stock ended Friday trading down 26 percent. The company recently reported financial results and an outlook with lower-than-expected revenue and profit-margin forecasts. It plans to lay off around 15,000 employees, target $10 billion in cost cuts next year, and suspend dividend payments in the fourth quarter. Intel's market value is now at a level last seen 15 years ago.

Intel's Q2 2024 results were disastrous, with revenue down a third compared to three years ago and a bleak outlook for the upcoming quarter. The company announced a 15% headcount reduction in an attempt to cut costs and turn around its fortunes. Despite receiving billions in government subsidies, Intel has struggled to keep up with competitors in the rapidly evolving semiconductor market, particularly in the mobile and AI chip segments.

Intel once dominated the chip industry. Despite its historic success, Intel's failure to adapt to changing market demands, particularly in mobile and AI, has led to a situation where its foundry business, Intel Foundry, is struggling to compete with industry leaders like TSMC. Intel Foundry's existence is no longer justified by market forces and the U.S. government will need to provide substantial financial support, such as purchase guarantees, for it to survive.

Intel has unveiled its Core Ultra 200V lineup, previously known as Lunar Lake, boasting superior AI performance, fast CPUs, and competitive integrated GPUs for thin laptops. The processors feature eight CPU cores, integrated memory, and enhanced efficiency but are limited to 32GB RAM. Major manufacturers like Acer, Asus, Dell, and HP will launch laptops with these new chips. Reviews are pending to confirm Intel's claims.

Qualcomm has approached Intel about a takeover in what could be one of the largest and most consequential deals in recent years. Intel is currently suffering through one of its most significant crises in its five-decade history. Its shares have dropped roughly 60% so far this year. A deal is far from certain and it will likely attract antitrust scrutiny.