Intel Promotes New Xeon Chips' AI Capabilities Amid AMD and ARM Competition

Intel is highlighting the efficiency benefits of its new Granite Rapids Xeon 6 server chips, especially in comparison to AMD's Turin processors that utilize a higher core count.

On Monday, Intel unveiled its latest Xeon 6 server processors in an effort to integrate AI processing across its data center offerings. This move comes as the chipmaker faces competition from AMD and ARM Holdings.

The newly introduced processors, named Xeon 6 6500 and 6700, are part of Intel's product lineup that was initially announced in September 2024. Codenamed “Granite Rapids,” the Xeon 6 chips include what Intel calls performance cores, which are individual computing units designed for high-performance tasks.

Intel's earlier Xeon 6 6900 series, revealed in September, comes with 128 performance cores each, while the 6500 and 6700 models have fewer cores—ranging from 16 to 86—offering lower prices and reduced power consumption. Intel also offers the "E" series focused specifically on energy efficiency within the Xeon 6 lineup.

In a media briefing prior to the announcement, Intel's chief architect Ronak Singhal pointed out the capabilities of the 6500 and 6700 chips when compared to AMD’s latest x86 CPUs, known as the Turin 9005. Singhal emphasized that the Xeon chips can deliver superior computation performance using fewer cores than AMD's offerings, which helps lower the total cost of operation (TCO).

He showcased a slide indicating "up to 50% higher AI performance with one-third fewer cores.” Singhal remarked, "Even at the lower core counts, we're able to provide higher performance across a range of workloads," which includes various tasks from database operations to high-performance computing and AI applications like model training and inference.

Intel is banking on the diverse configurations available in the Granite Rapids Xeon 6 processor family. Singhal underlined the inclusion of AI-optimized instructions known as Advanced Matrix Extensions (AMX) in the Granite Rapids chips. These instructions facilitate core functions such as matrix multiplication, which is essential for AI workloads, along with traditional computing tasks.

According to Singhal, the AMX capabilities have led to increased adoption of Xeon chips among major cloud service providers. He suggested checking with cloud providers to see their discussions around using AMX with their customers, noting that they promote renting Xeon instances for features that cater to confidential computing scenarios.

The introduction of the 6500 and 6700 models aligns with Intel's strategy to maintain its competitive edge as the company faces declining market share due to pressure from AMD and ARM.

Intel's financial reports indicate a downward trend, with AMD surpassing Intel's data center revenue for the first time in the last quarter. AMD reported $3.5 billion in data center revenue compared to Intel's $3.3 billion.

Currently, TechInsights reports that Intel's share of the x86 server chip market has dwindled from 96% in early 2020 to 65%, while AMD's share has risen to 35% from just 4%.

ARM, which provides chip designs rather than manufacturing chips itself, has a smaller revenue base but is experiencing growth, particularly in data center applications. Major cloud firms like Google are employing ARM designs for their custom chips, such as Google's TPU and Amazon's Graviton processors.

Although specific figures for ARM's data center sales are not disclosed, analysts suggest that a significant portion of ARM's revenue growth—projected at 26% for the year—can be attributed to data center sales.

Intel argues that its Xeon processors, specifically the 6500 and 6700, can serve a broader range of enterprise applications, helping organizations achieve a lower TCO compared to both AMD and ARM chips. Singhal explained, "This is really focused on the broad enterprise, with particular attention to AI and security, as we aim to improve our customers' infrastructure investments."

Singhal added that the goal is to enable enterprises to shift from outdated infrastructure to new systems designed for modern workloads while also reducing power consumption.

Despite these advancements, TechInsights highlights that Intel's executive changes and the need to innovate remain critical for the company. Singhal confirmed that the successor to Granite Rapids, known as Clearwater Forest, is on track for production in the first half of the next year, although this is a delay from earlier expectations.

Furthermore, Intel's dedicated AI chip, Gaudi 3, reportedly fell short of internal sales targets last year, which puts Intel at a disadvantage in the AI accelerator market, typically dominated by AMD and NVIDIA. Future plans for a successor chip called Falcon Shores are on hold, with new product development expected under the name Jaguar Shores, set for a 2027 release.

Intel, AI, Xeon, AMD, ARM