OpenAI has managed to partner with almost every major computing firm, except for one notable exception: Intel. According to an analysis, a potential deal appears to be far-fetched for now.
Intel Doesn't Have a Solution To Offer For OpenAI's Compute Needs, But a Partnership Could Occur on a Limited Scale
Within the past few months, OpenAI has managed to enter into numerous partnerships involving compute providers such as NVIDIA and AMD, along with CSPs like Oracle, Microsoft, and many others. These moves come before the AI giant's 'optimistic' IPO, but amongst all the deals out there, OpenAI missed out on a 'big player', which is, of course, Intel. According to an analysis by Quartz, an Intel-OpenAI collaboration could pan out, but it presents a complex scenario, primarily since Intel's current offerings do not provide the computing power needed by OpenAI's AGI efforts.
Intel's lag in training-class GPU performance makes a significant partnership less probable today. OpenAI already has deeper relationships and more advanced hardware programs than what Intel currently offers.
- Brad Gastwirth, Global Head of Research and Market Intelligence at Circular Technology
Well, the thought process isn't wrong here at all, since when you look at the computing power being offered by Intel, there aren't many options out there. The company's Gaudi-class AI chips are considered 'obsolete' compared to what competitors like NVIDIA/AMD offer, and regarding future products, Intel's plans remain uncertain. The firm has recently showcased an inference-focused option called 'Crescent Island', featuring LPDDR5 memory onboard; however, it doesn't meet the requirements that OpenAI demands from its partners.
Compared to AMD/NVIDIA, Intel is yet to achieve a mature software + hardware tech stack, and the company seems to be a 'bit sluggish' with its approach to AI. We can express optimism towards Intel's future Jaguar Shores AI solution, which will also scale up to a rack configuration, but we haven't seen concrete details about the architecture yet, so it wouldn't be wrong to say that OpenAI doesn't have a prospect in partnering up with Intel, unless something changes drastically.
One way OpenAI could be compelled to form a partnership with Intel is by leveraging the deal to secure a better relationship with the Trump administration, considering that the AI giant is pursuing incentives such as tax credits under the CHIPS Act or even loan guarantees for data center buildouts. Since we know that President Trump is 'fond' of micromanaging investments by the USG, a 'limited-scale' partnership could take place between Intel and OpenAI, but yet again, this is just speculation for now, and nothing is official.
There's no doubt that Intel's AI strategy over the past few years has put the company behind, which is why CEO Lip-Bu Tan is now directly heading it to ensure that his firm secures the compute demand ahead.
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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