Intel starts making GPUs, Nvidia dominates the market | TechCrunch

As Intel continues to struggle to turn itself around, its CEO has promised that the company will start making a new type of chip that rival Nvidia has taken a liking to.

Intel CEO Lip-Bu Tan announced at the Cisco AI Summit on Tuesday that the company will begin manufacturing graphics processing units (GPUs). These are more specialized processors compared to the processors that Intel has traditionally produced, and are used for gaming and tasks such as training artificial intelligence models.

TechCrunch has asked Intel for more information.

The project will be overseen by Kevork Kechichian, executive vice president and general manager of Intel’s data center group, according to Reuters reports. Kechichian was hired in September among a slew of engineering-focused new hires.

Intel also hired Eric Demers in January. Demers was previously with Qualcomm for more than 13 years, most recently as senior vice president of engineering.

The initiative appears to be in relatively early stages as Tan said the company plans to develop its strategy based on customer demands and needs.

While Nvidia didn’t invent the GPU, this specific kind of chip played a big role in its success. Its GPUs for AI systems are so advanced and popular that the chip maker is currently the market leader.

Interestingly, Intel is now expanding into this area as Tan said the company would consolidate and focus on its core businesses when he took the helm as CEO last March. While GPUs are still semiconductors, this is of course still a remarkable expansion.