Mint Explainer: Why Intel is betting on siliconomy, AI-enabled PCs
market capitalization to more than $1 trillion. Intel Inc. does not want to be left behind in the AI race, as was evident during the Intel Innovation 2023 event that began on 19 September in San Jose, California.
Jensen Huang, Nvidia’s co-founder, president and chief executive has been promoting ‘accelerated computing’, a term that blends central processing units (CPUs), GPUs and and other processors such as data processing units (DPUs) “together as equals in an architecture sometimes called heterogeneous computing". Intel CEO Pat Gelsinger meanwhile is pushing 'siliconomy', a term he coined, to describe "... an evolving economy enabled by the magic of silicon where semiconductors are essential to maintaining and enabling modern economies".
That said, while Nvidia is a fabless company that does not manufacture its own chips, Intel has its own foundries and makes its own chips. Nevertheless, both the terms mentioned above simply imply that AI is here to stay and that the companies designing or making chips will leave no stone unturned in grabbing a bigger slice of the AI cake. The opportunity is huge.
According to a 22 August note by research firm Gartner, semiconductors designed to execute AI workloads will represent a $53.4 billion revenue opportunity in 2023, an increase of 20.9% from 2022. Alan Priestley, VP analyst at Gartner, attributes the growth to the developments in generative AI and the increasing use of a wide range AI-based applications in data centres, edge infrastructure and endpoint devices, which require high-performance GPUs and optimised semiconductor devices. Gartner predicts that AI semiconductor revenue may touch $67.1 billion in 2024 and $119.4 billion by 2027, which is more than double the size of
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