Intel Ventures into AI GPU Market with Innovative Data Center Initiative
Intel CEO Lip-Bu Tan announced on February 3, 2026, that the chipmaker is making a significant stride into the graphics processing unit market. They have hired a new chief architect to pioneer the development of GPUs specifically designed for AI data centers.
While speaking at the Cisco AI Summit, Tan disclosed that Intel has appointed a senior GPU architect to spearhead the initiative. However, he did not reveal the identity of the new hire. This move marks Intel’s latest bid to rival dominant players Nvidia and AMD in the profitable AI accelerator market.
The initiative builds upon Intel’s previously announced Crescent Island GPU, unveiled in October 2025. This GPU is designed for AI inference workloads and is expected to commence customer sampling in the second half of 2026. The new GPU boasts 160GB of LPDDR5X memory and employs Intel’s Xe3P microarchitecture, optimized for energy efficiency in air-cooled enterprise servers.
Intel’s GPU initiative will be supervised by Kevork Kechichian, executive vice president and general manager of Intel’s data center group. Eric Demers, a seasoned GPU architect hired from Qualcomm in January 2026, will provide additional support.
The announcement comes as Intel continues its broader turnaround strategy under Tan’s leadership. The focus is on regaining market share in AI infrastructure while developing its foundry business to manufacture chips for third-party customers.
Source: CNBC