Intel has high hopes in the field of artificial intelligence for its recently established standalone programmable chip unit Altera.
Microchips and electronic components on a PCB board – illustrative photo. Image credit: Chris Ried via Unsplash, free license
The unit, known officially as “Altera, an Intel company,” became independent at the beginning of the year. Experts highlight the versatility of the programmable FPGA chips designed by Altera, emphasizing their utility in AI applications and computing tasks that lie between specialized processors developed by cloud computing giants like Amazon and general-purpose AI chips produced by Nvidia.
As the hardware landscape for AI evolves, CEO Sandra Rivera sees programmable chips occupying a significant and expanding niche market. The parent company, Intel, intends to conduct a stock offering for Altera within the next two to three years.
The market estimation for programmable chips in 2023 ranged from $8 to $10 billion, though the exact potential remains uncertain due to a lack of comprehensive third-party data. Rivera believes the opportunity for programmable chips is more extensive than commonly acknowledged, attributing this to the myriad ways these chips assist in various stages of the AI workflow.
Intel’s current line of programmable chips, Agilex, is manufactured by Intel Foundry, the company’s contract manufacturing arm.
Rivera did not disclose whether Intel Foundry would produce the upcoming Agilex 3 chips, but she hinted at favorable treatment for the company’s business units, potentially receiving a “friends and family discount” based on their volumes. An Intel spokesperson later clarified that Intel Foundry’s customers may receive advantageous pricing depending on anticipated volumes, with Intel business units being the largest customer(s) of Intel Foundry at present.
Written by Alius Noreika