(NASDAQ: INTC) has largely missed out on the booming market for AI accelerators. The company's Gaudi line of AI chips, which came from its acquisition of Habana Labs in 2019, failed to gain any real traction, partly due to immature software and an unfamiliar architecture. Falcon Shores, which was meant to be a more traditional data center AI GPU, was scrapped as a commercial product earlier this year.

While Intel is likely too late to compete in the market for AI accelerators used for training models, AI inference is another story. While AI training workloads require massive computational horsepower and data throughput, AI inference workloads aren't nearly as demanding. As AI models and AI agents are deployed to tackle a growing number of use cases, the need for efficient and affordable AI inference chips is on the rise.

Image source: Intel.

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Source Fool.com