Intel is ‘canceling’ its next big AI chip: What interim co-CEO has to say

Intel has announced that it has scrapped plans for its next major AI chip, Falcon Shores, seemingly dealing a blow to its ambitions in the rapidly growing artificial intelligence (AI) market. Interim co-CEO Michelle Johnston Holthaus admitted the company’s AI server business, particularly its Gaudi chips, has fallen short of expectations.

Speaking on today’s earnings call, Holthaus announced a move to “simplify our roadmap and concentrate our resources,” explaining that Falcon Shores will now be used only internally as a test chip and will not be brought to market.