Intel chief: AI will “happen at the edge and at the client.”

During Intel’s (NASDAQ: INTC) Q2 2023 earnings call, CEO Pat Gelsinger expressed strong confidence in the future of AI, announcing an ambitious plan to integrate AI into all of Intel’s products. Intel’s upcoming consumer chip, Meteor Lake, will include a built-in neural processor for machine learning tasks.

Gelsinger’s vision goes beyond just premium chips, as he expects AI to eventually be present in all Intel products.

In the call, Gelsinger discussed the significance of AI in various applications, highlighting real-time language translation, transcription, automation inference, content generation, gaming environments, and more. He emphasized the importance of AI being embedded in client devices and edge platforms, rather than relying solely on the cloud. According to him, latency, bandwidth, and cost considerations make cloud-based AI impractical for certain use cases. (The Verge)

While Nvidia (NASDAQ: NVDA) has excelled in providing chips for AI cloud services, Intel aims to carve its own path in the AI market. Gelsinger acknowledged that not everyone prefers cloud-based solutions, even major players like Microsoft, which still relies on selling licenses for Windows PCs.

Microsoft (NASDAQ:MSFT) has been exploring AI integration in its products, like Copilot, but such cloud-powered services come with subscription costs.

A leak suggests that the next version of Windows, possibly Windows 12, could see integration with Intel’s Meteor Lake chip, incorporating its built-in neural engine to further enhance AI capabilities.

Overall, Intel is positioning itself to be a major player in the AI industry, with plans to integrate AI into virtually every product it offers.

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