Shulou(Shulou.com)11/24 Report--

On the morning of January 11, Beijing time, Intel released a newly designed server chip, which is the key for the company to regain control of one of the most profitable markets in the computer industry.

On Tuesday, Intel said that the Xeon processor based on the new Sapphire Rapids design has been used in cloud computing systems run by Alphabet's Google and Amazon's AWS, as well as in servers provided by Hewlett-Packard Enterprises and Dell Technologies.

For Intel, the world's largest computer processor maker, the new product presents an opportunity to contain the loss of market share and prove that it has regained its ability. it can provide competitive chips needed for servers that serve as the backbone of the Internet and corporate networks. Sandra Rivera, head of Intel's data centre and artificial intelligence division, said Sapphire Rapids's debut was the first step for the company to restore confidence that Intel would once again lead the computer industry forward.

"after several mistakes, we have been trying to regain the trust of our customers to prove that our work is improving and that we are regaining excellent execution," Rivera said in an interview. "

With the outbreak of the industry, Intel's data center business has been stagnant. The company's Xerox series of chips, which once accounted for more than 99% of the market, need to analyze and understand more and more data generated by smartphones and the Internet. In the past, however, localization efforts by Intel's competitor AMD and some of the company's biggest customers have eroded the company's dominance in the server sector. The company's capabilities have been weakened by delays in production technology and the introduction of new chips to the market. The Sapphire Rapids was first announced by Intel in 2019, and its launch has been delayed at least twice.

Third-quarter sales of Intel's data center division, which typically accounts for a large portion of Intel's profits, fell 27% to $4.2 billion. Over the same period, revenue from AMD's data center division grew by 45 per cent. AMD snatched 3.6% of the market share from Intel, but Intel still has 83% of the market, according to research firm Mercury Research.

Intel said the new server product was part of an ambitious plan by chief executive Pat Gelsinger to bring the chipmaker back to the forefront of the industry. However, investors had previously expressed dissatisfaction with the cost and time required of the plan, causing the company's shares to fall 49 per cent last year.

Intel executives say the new Xeon chip designed with Sapphire Rapids has brought technological advances and will make its customers more flexible. These processors can play a role in the current environment, where server buyers want to combine multiple types of chips from multiple chip manufacturers.

At least one of Intel's competitors agrees. Nvidia has chosen the new Intel design as the processor for its DGX artificial intelligence acceleration server system, abandoning the AMD chip it used in the previous generation.

Intel was willing to work with Nvidia in the early days to share test chips and help Nvidia fine-tune software for its chips, which eventually made it into the machine used to train AI software. "Intel has always been an excellent partner, providing us with technology when we need it and working deeply with our engineering team," said Charlie Bowier, vice president of Nvidia.

In addition to playing a role in high-end artificial intelligence devices such as Nvidia's DGX, Sapphire Rapids has several accelerators built into its design. Lisa Spelman, Intel vice president, says users who use less powerful servers, such as owners of internal corporate data centres, can take advantage of artificial intelligence to analyze their data.

Overall, the new design will help data center operators save energy, allow some customers to reduce the use of stand-alone chips, and enable servers to work more quickly.

AMD released its latest server design in November last year, when the company put forward some similar ideas to improve efficiency. Analysts such as Hans Mosesmann of Rosenblatt Securities and Stasi Stacy Rasgon of Sanford C. Bernstein say Intel's competitive position will still be challenged this year. Even Intel CEO Gail Singh has said that the competition for servers will be a "hand-to-hand fight" for some time.

For Rivera, the Sapphire Rapids and its successors will be the beginning of reversing Intel's recession. "income and market share are important tracking indicators that allow us to look at what we have done and what we have not done in the past few years," she said. I think all the leading indicators, including the health of the product, the improvement of the product, the on-time and on-time launch of the upcoming product, are all important tools for us to turn our biggest critics into supporters. Make them believe that Intel has found its magic. "

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