JPR estimates Intel GPU unit losses at $3.5 billion, suggests selling it

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Intel may shut its Accelerated Computing Systems and Graphics Group, according to Jon Peddie Research's CEO (AXG). The division has lost money for years and has no competitive products in any market segment. Intel doesn't require the best GPUs, just operational ones.



According to Jon Peddie, Intel has invested $3.5 billion on discrete GPU development. Since its founding in 2021, Intel's AXG has lost $2.1 billion. JPR thinks AXG may be next for Pat Gelsinger, Intel's CEO, who has cut six businesses since early 2021.

"Gelsinger isn't afraid to make painful decisions and dismantle treasured efforts if they don't deliver," Peddie wrote. "[...] Rumors say the party is over and AXG will be dropped next. Koduri disproved the rumor."

Intel's GPUs will manage computation, graphics, video, image, and machine intelligence for client and data center applications, the company said. Core and Visual Computing Group was developed for edge computing.

Five years into its discrete GPU journey, the company has released two low-end standalone GPUs, launched its low-power graphics architecture for integrated GPUs, delivered one API that could be used to program CPUs, GPUs, FPGAs, and other compute units, canceled its Xe-HP GPU architecture for datacenter GPUs, and postponed (multiple times) shipments of its Ponte Vecchio compute GPU for AI and HPC.

Given how late Intel's Arc Alchemist 500 and 700-series GPUs have arrived and that they will have to compete with AMD and Nvidia's next-generation products, they will likely fail. Intel's losses will worsen.

Jon Peddie says Intel has spent $3.5 billion on AXG with little success. Intel's losses are predictable because discrete GPUs are a nascent market that requires substantial investment. "Intel's leaving is 50-50," Peddie said. "If they don't, the company will lose years breaking into a harsh industry."

JPR estimates Intel GPU unit losses at $3.5 billion, suggests selling it


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