Intel Corp. is rolling out new processors designed for data centers, a lucrative market where it’s facing tougher competition from Nvidia Corp. and Advanced Micro Devices Inc.
The new lineup will include updated artificial intelligence chips, fresh versions of Intel’s Xeon processors and semiconductors that help connect telecommunications networks. For the first time, the company also will sell graphics chips designed for data centers, challenging Nvidia on its own turf.
Nvidia’s data-center business has tripled since 2019 to more than $10 billion a year. AMD, meanwhile, saw overall revenue surge 71% in the first quarter, fueled by sales of processors for cloud-computing servers.
Nvidia led the way in adapting graphics processors for the data-center market, and AMD followed its lead. Now Intel is playing catch-up. The company, which has never offered stand-alone graphics chips before, will begin selling two versions of a processor called Arctic Sound starting in the third quarter. Dell Technologies Inc., Hewlett Packard Enterprise Co. and Cisco Systems Inc. all plan to offer computers featuring the new chip, Intel said.