While the artificial intelligence (AI) accelerator market is dominated by Nvidia (NASDAQ: NVDA), (NASDAQ: INTC) has been trying to gain ground. The company's Gaudi line of AI chips historically couldn't match Nvidia on performance, but Intel pitched them as a cost-effective alternative to Nvidia's pricey graphics processing units (GPUs).

Gaudi 3, Intel's third-generation Gaudi AI chip, was officially unveiled on Tuesday. This time around, Intel is pushing both the performance and cost angles. The company claims that Gaudi 3 beats Nvidia's H100 GPU by 50%, on average, in AI inference tasks, with 40% better power efficiency -- and it will be available at "a fraction of the cost" of Nvidia's powerful chip.

Intel presented impressive numbers, although they should be taken with a grain of salt until third-party benchmarks are performed. The company claims that Gaudi 3 will offer quadruple the AI compute performance over Gaudi 2 using a particular low-precision format and 50% more memory bandwidth.

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Source Fool.com