Pat Gelsinger, CEO Intel, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.
Adam Galici | CNBC
Intel on Tuesday unveiled its latest artificial intelligence chip, called Gaudi 3, as chipmakers rush to produce semiconductors that can train and deploy big AI models, such as the one underpinning OpenAI’s ChatGPT.
Intel says the new Gaudi 3 chip is over twice as power-efficient as and can run AI models one-and-a-half times faster than Nvidia’s H100 GPU. It also comes in different configurations like a bundle of eight Gaudi 3 chips on one motherboard or a card that can slot into existing systems.
Intel tested the chip on models like Meta’s open-source Llama and the Abu Dhabi-backed Falcon. It said Gaudi 3 can help train or deploy models, including Stable Diffusion or OpenAI’s Whisper model for speech recognition.
Intel says its chips use less power than Nvidia’s.
Nvidia has an estimated 80% of the AI chip market with its graphics processors, known as GPUs, which have been the high-end chip of choice for AI builders over the past year.
Read more CNBC reporting on AI
Intel said that the new Gaudi 3 chips would be available to customers in the third quarter, and companies including Dell, HP and Supermicro will build systems with the chips. Intel didn’t provide a price range for Gaudi 3.
“We do expect it to be highly competitive” with Nvidia’s latest chips, said Das Kamhout, vice president of Xeon software at Intel, on a call with reporters. “From our competitive pricing, our distinctive open integrated network on chip, we’re using industry-standard Ethernet. We believe it’s a strong offering.”
The data center AI market is also expected to grow as cloud providers and businesses build infrastructure to deploy AI software, suggesting there is room for other competitors even if Nvidia continues to make the vast majority of AI chips.
Running generative AI and buying Nvidia GPUs can be expensive, and companies are looking for additional suppliers to help bring costs down.
The AI boom has more than tripled Nvidia’s stock over the past year. Intel’s stock is only up 18% over the same time period.
AMD is also looking to expand and sell more AI chips for servers. Last year, it introduced a new data center GPU called the MI300X, which already counts Meta and Microsoft as customers.
Earlier this year, Nvidia revealed its B100 and B200 GPUs, which are the successors to the H100 and also promise performance gains. Those chips are expected to start shipping later this year.
Nvidia has been so successful thanks to a powerful suite of proprietary software called CUDA that enables AI scientists to access all the hardware features in a GPU. Intel is teaming up with other chip and software giants, including Google, Qualcomm and Arm to build open software that isn’t proprietary and could enable software companies to easily switch chip providers.
“We are working with the software ecosystem to build open reference software, as well as building blocks that allow you to stitch together a solution that you need, rather than be forced into buying a solution,” Sachin Katti, senior vice president of Intel’s networking group, said on a call with reporters.
Gaudi 3 is built on a five nanometer process, a relatively recent manufacturing technique, suggesting that the company is using an outside foundry to manufacture the chips. In addition to designing Gaudi 3, Intel also plans to manufacture AI chips, potentially for outside companies, at a new Ohio factory expected to open in 2027 or 2028, CEO Patrick Gelsinger told reporters last month.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.