Intel has unveiled the prices of its Gaudi 2 and Gaudi 3 accelerators for AI, which are significantly lower than Nvidia’s H100. The company revealed at Computex 2024 that eight Gaudi 2 processors on one motherboard will cost $65,000, while eight Gaudi 3 processors will cost $125,000. This means that a single Gaudi 2 is priced at around $8,125 and a Gaudi 3 costs around $15,650 when purchased in bulk with a socket. Intel can offer even more discounts for large customers who purchase in large quantities.
On the other hand, Nvidia’s 80GB H100 cards cost $30,000, with HSBC projecting that the next-generation B100 GPU could have a price ranging between $30,000 and $35,000. The more powerful GB200 is expected to be priced between $60,000 and $70,000. However, these are just analyst estimates, and the actual cost may vary.
Selling Gaudi accelerators for AI at a discount is a strategic move by Intel, as the company is trying to compete in a market dominated by Nvidia and custom internally designed AI processors used by cloud service providers like AWS and Google. Intel faces challenges in competing against these custom silicon solutions, as they come with no profit margins, making it difficult for Intel to compete. Additionally, Intel needs to gain profit from selling their products, whereas companies like AWS do not have the same constraint.
Overall, Intel’s pricing strategy for its Gaudi 2 and Gaudi 3 accelerators is aimed at offering competitive prices compared to Nvidia’s offerings in the AI market. The lower prices could attract customers looking for cost-effective AI solutions, especially those purchasing in bulk. Intel’s ability to provide discounts for large quantities could further incentivize customers to choose their products over Nvidia’s alternatives.
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