We're not yet participating in the cloud-based AI data center market in a meaningful way,” Holthaus admitted. “We have learne

Falcon Shores had already undergone multiple revisions before its cancellation. Initially envisioned as a modular "XPU" capable of mixing and matching CPU and GPU tiles, Intel scaled the project back to a standard GPU in 2023 after it scrapped "Rialto Bridge,

Intel says its new Falcon Shores AI accelerator won't see the light of day, shifts its focus into next-gen Jaguar Shores 'rack-scale' solutions.

In the first earnings report since former CEO Pat Gelsinger left the company, Intel’s fourth-quarter revenue was down seven percent year-on-year (YoY) to $14.3 billion, whilst full-year revenue declined by two percent YoY to $53.1bn.

Holthaus also revealed that Intel plans to use Falcon Shores as an internal test chip, not launching it in the market. This move is part of the company's strategy to streamline its roadmap and optimize resources. "AI data center...is an attractive market for us," Holthaus said during the call. "But I am not happy with where we are today."

Intel's next-generation AI and HPC GPU will only be used internally, Jaguar shores will be the real successor for Gaudi 3 in the AI space.