Intel Corporation INTC is strengthening its position in artificial intelligence (AI) infrastructure through a multi-year partnership with Alphabet Inc. GOOGL. The deal highlights Intel’s focus on powering next-generation cloud systems by combining Intel’s compute capabilities with specialized acceleration technologies to improve efficiency and performance.
Under the agreement, Intel’s Xeon processors, including the latest Intel Xeon 6 CPUs (Central Processing Unit), will continue to power Google Cloud’s data centers. These CPUs handle key tasks like managing workloads, processing data and supporting AI training and inference. They help Google Cloud run different types of workloads efficiently, from machine learning to fast-response applications.
In addition, Intel and Google are expanding their co-development of custom Application-specific integrated circuit or ASIC-based Infrastructure Processing Units (IPUs). These custom chips are designed to offload networking, storage and security tasks from the CPU, improving overall system efficiency and freeing up compute resources for more critical operations.
By integrating Xeon CPUs with IPUs, Intel is enabling a more balanced architecture that optimizes both general-purpose and specialized processing. Through this collaboration, Intel has positioned itself as a key enabler of scalable, efficient AI infrastructure for the future.
Intel faces competition from Qualcomm Incorporated QCOM and Advanced Micro Devices AMD. Qualcomm is focusing on edge AI, enabling smartphones and cars to run AI directly on the devices without using the cloud. It is expanding in the AI data center market with new chips such as AI200 and AI250 for large-scale AI workloads. The company is further using its Snapdragon platforms to grow in automotive and robotics AI.
AMD is building powerful AI chips like Instinct GPUs and EPYC CPUs for data centers to support massive AI tasks. It is creating full AI infrastructure systems, including rack-scale platforms such as Helios, for training and running large AI models. The company is working with cloud and tech partners to expand AI computing across cloud, enterprise and edge devices.
Shares of Intel have skyrocketed 210.5% over the past year compared with the industry’s growth of 71.5%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company’s shares currently trade at 2.44 book value, lower than 27.96 of the industry average.
