Intel’s Gaudi 3 AI Chips Secure Integration in Dell’s PowerEdge Servers, Marking One of the Few Wins for the Struggling Lineup

Sep 17, 2025 at 01:56pm EDT
Intel's Gaudi 3 AI accelerator

Intel's Gaudi 3 AI chips have seen a rather 'rare' feature from Dell's PowerEdge AI servers, which are claimed to be cost-efficient and scalable.

Dell's PowerEdge XE7740 Servers Bring Intel's Gaudi 3 To The Mainstream Market, Offering Cost-Efficiency

When it comes to Intel's AI business, it is indeed the slowest of competitors, mainly because the firm was late to the party and, more importantly, couldn't keep up with the likes of NVIDIA and AMD at all. When other GPU manufacturers were relying on the AI frenzy for their revenues, Intel took a sluggish approach, which is why its Gaudi AI lineup didn't see widespread adoption from CSPs, apart from a few occasions. Now, in a press release by Dell, it is revealed that the Gaudi 3 AI chip has been featured in Dell's PowerEdge XE7740 server, being one of the first major firms to offer the configuration.

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The XE7740 server offers eight PCIe accelerators, supports 8x Gaudi 3 AI chips in a single configuration, and offers a 1:1 networking interface, allowing flexible integration within a server-based system. The PowerEdge XE7740 features ready support for modern-day AI models, which includes Llama4, Llama3, Deepseek, Phi4, Qwen3, Falcon3, and more. Dell hasn't shared any performance figures yet, but here's what the company claims is the advantage of employing Intel's Gaudi 3 AI chips in their system:

  • Cost efficiency: The XE7740 offers a compelling price-to-performance ratio, ensuring you get more AI capability for less.
  • Scalability: With modular configurations and optional accelerator bridging, enterprises have greater flexibility to right-size and grow their AI capabilities incrementally.
  • Compatibility: Designed for enterprise data centers with stringent power and cooling limitations, the XE7740 ensures seamless integration, eliminating the need for retrofitting infrastructure.

While it is undoubtedly exciting to see Intel's Gaudi 3 featured by a mainstream CSP, it wouldn't be wrong to say that Team Blue still has a long way to go when it comes to launching a competitive product in the AI segment. More importantly, with Falcon Shores being canceled, the next big release would likely be Jaguar Shores, as confirmed by Intel. And with that particular lineup, one could expect Intel to compete more aggressively with AMD/NVIDIA, since Jaguar Shores will be the first rack-scale solution as well.

About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.

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