Executive Vice President and Chief Technology Officer Greg Lavender states that Intel’s software efforts are doing well and might bring in $1 billion in software revenue by the end of 2027.
According to Chief Technology Officer Greg Lavender, Intel’s (INTC.O.) push into software is progressing well, and by the end of 2027, the business may generate $1 billion in software income overall. In 2021, when CEO Pat Gelsinger brought Lavender in from cloud computing firm VMware to lead the chipmaker’s software strategy, Intel generated software sales of over $100 million. Three software startups have been acquired by Intel since then. “I have a goal of getting to $1 billion of software and developer cloud subscription revenue,” he stated. “I think I’m on track to hit this goal by the end of 2027, maybe sooner.”
Cloud computing and artificial intelligence are only two of the software services and technologies that Intel, which will bring in $54 billion in revenue in 2023, makes available for hire. According to Lavender, the organization has been investing in all three sectors, and his plan is to concentrate on offering services in AI, performance, and security.
In a related development, Lavender stated that Intel is experiencing “a lot of demand” for its upcoming Gaudi 3 processor, which he thinks would enable the business to overtake competitors in the AI chip market. Advanced Micro Devices (AMD.O.) and Intel open a new tab. AI processors haven’t been able to seriously challenge industry leader Nvidia (NVDA.O.), which opened a new tab that had about 83% of the market for data center chips in 2023. According to Lavender, Intel is backing open-source projects aiming to develop tools and software that can run a variety of AI chips and anticipates more advancements in the upcoming months.
CUDA, Nvidia’s software that ties developers to Nvidia hardware, is a contributing factor in the company’s success. According to sources, Nvidia may face charges from France’s antitrust commission for alleged anti-competitive behavior. The watchdog has expressed worries regarding the generative AI industry’s reliance on CUDA. As a member of the UXL Foundation, a group of IT companies is working on an open-source project that would enable computer code to run on any device, independent of the hardware and chip that power it. Intel is one of these companies.
Other members are Arm Holdings, Samsung Electronics (005930.KS), Qualcomm (QCOM.O), and Samsung Electronics. Furthermore, according to Lavender, Intel is funding Triton, an OpenAI-led project to create an open-source programming language aimed at improving code efficiency across AI hardware. The project is also supported by AMD and Meta. Triton is now operational on the graphics processing units that Intel currently sells, and it will be integrated into the company’s upcoming AI chips.
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