Intel reportedly wants to compete with OpenAI, others in AI race
Oct. 26, 2023 1:12 PM ET
By: Christiana Sciaudone, SA News Editor
37 Comments
 Vertigo3d
Intel’s (NASDAQ: INTC) trying to catch up to artificial intelligence. But not in the usual way.
The semiconductor giant is reportedly working with multiple consulting firms to build a ChatGPT-like app for customers who can’t do it on their own, The Information reported, citing two people with direct knowledge of the situation.
Intel ( INTC) started working with Boston Consulting Group and has since added new partners as it also seeks to sell its app-building software and services directly to corporate customers, the news outlet added.
The Santa Clara, California-based company isn’t usually in the business of working directly with customers, but it’s far behind competitors in providing AI offerings.
Intel ( INTC) shares fell nearly 2% in mid-day trading on Thursday amid a continued decline in technology stocks.
Nvidia ( NVDA) has been at the forefront of the AI revolution, reporting earnings in August that smashed estimates. The company forecast third quarter sales of $16B, plus or minus 2%, well above the $12.5B that analysts were expecting.
Intel ( INTC) has not previously worked with corporate software customers who usually buy large language models made by companies such as OpenAI, which is backed by Microsoft ( MSFT). Instead, Intel wants to work with the consulting firms to help less-sophisticated customers determine which LLMs to use, depending upon the issue, the news outlet explained.
Intel did not immediately respond to a request for comment from Seeking Alpha.
Some customers of OpenAI customers have looked for cheaper alternatives. Last month, it was reported that Microsoft was working on cheaper AI models with the same capabilities as those from OpenAI.
Cloud providers including Microsoft ( MSFT), Amazon ( AMZN) and Google ( GOOG) ( GOOGL) are looking to “soak up much of the AI-related corporate spending by renting out specialized servers for training and running LLMs,” The Information reported.
Meanwhile, Nvidia ( NVDA) is trying to push itself further into the cloud services space and compete with the aforementioned cloud providers.
Intel ( INTC) is slated to report third-quarter results after the close of trading. A consensus of analysts expect the company to earn an adjusted 22 cents per share on $13.6B in revenue. |
