Intel eyes GPU market amid surge in AI model training demand

Intel eyes GPU market amid surge in AI model training demand

04 Feb 2026, 09:37 AM

Nvidia, which last agreed to invest $5 billion in Intel, currently holds the market lead for GPUs used by data centers.

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Intel CEO Lip-Bu Tan said at the Cisco AI Summit on Tuesday that his company will foray into graphics processing units (GPUs) manufacturing.

The project will be led by Kevork Kechichian, chief of Intel Data Center Group, the Reuters reported. The processing units maker giant had also hired Eric Demmers, a Qualcomm executive, last month in the role of Senior Vice President, GPU architecture.

The demand for GPUs has shot up exponentially in recent years for their role in training artificial intelligence (AI) models.

Intel has traditionally manufactured central processing units (CPUs). Tan said that the push into making the new type of chip is targeted at AI data centers, and the product will be defined by their needs.

Nvidia currently holds the market lead for GPUs used by data centers. The popular demand for their chips led to Nvidia crossing $4 trillion in market cap last year.

Notably, last year Nvidia agreed to invest $5 billion in Intel to co-develop chips for PCs and data centres.

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