Intel’s Habana starts to chip away at Nvidia in cloud with AWS deal

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Intel Corp’s Habana Labs business said it might take the time to acquire market share from Nvidia in cloud and information centre computing but its deal this week using AWS was a strong first step.

Intel in December purchased Israel-based artificial intelligence company Habana for about $2 billion, seeking to expand its AI portfolio to strengthen its data-centre business.

Habana’s Gaudi AI training processor, launched in June 2019, has faster processing rates to compete with similar products from Intel rival Nvidia.

“We have to realise that we’re starting from zero and Nvidia is 100%,” said Eitan Medina, Habana’s chief business officer, who stated that having AWS as its very first customer was quite important.

“We are making the dent at the most important place. We’re starting with a very big guy that has the longest experience… It will take time but I believe we’re on the right path.”

Medina declined to comment on whether Habana was negotiating other deals.

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Habana on Tuesday said its Gaudi chips will force AWS’s Amazon Elastic Compute Cloud “instances” for machine learning workloads, in Habana’s first bargain for its Gaudi chips.

Amazon is seeing rising demand for its cloud tools during the coronavirus pandemic. These chips, Intel said, would provide 40% better price performance than current images processing.

Medina reported that the benefits of Gaudi AI processors were efficacy and allowing for lower capital and operating expenses that in turn could contribute AWS and the others the ability to lower prices for clients for host time.

“We are now starting so it will depend on the combination of how we will execute and how important is it for users to lower their cost and to have alternatives to GPUs (graphics processing units),” Medina said. “Our total available market is 100% of AI.”

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Steven Scheer. Editing by Jane Merriman.

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