According to Zhītōng Cáijīng APP, Greg Lavender, CTO of Intel (INTC.US), said that the company's progress in software is smooth, and the company's software cumulative revenue may reach $1 billion by the end of 2027. Lavender also said that the upcoming Gaudi 3 chip is expected to help Intel secure the second position in the AI chip market.
Intel achieved over $0.1 billion in software revenue in 2021. That year, CEO Pat Gelsinger poached Lavender from cloud computing company VMware to guide the software strategy of the chipmaker. Since then, Intel has acquired three software companies.
"My goal is to achieve $1 billion in revenue from software and developer cloud subscriptions," Lavender said. "I think it is possible to achieve this goal by the end of 2027...maybe even earlier."
In 2023, Intel posted $54 billion in revenue, providing a range of software services and tools from cloud computing to AI.
Lavender said his strategy is focused on providing services in AI, performance, and security, and the company has been investing in these three areas.
In addition, Lavender said that the upcoming Gaudi 3 chip has "strong demand," and he believes the chip will help Intel secure the second position in the AI chip market.
So far, Intel and AMD's (AMD.US) AI processors have not made much progress in undermining Nvidia's (NVDA.US) dominant position in the data center chip market. Nvidia held about 83% of the data center chip market in 2023.
Lavender said Intel is supporting an open-source initiative aimed at building software and tools that can power various AI chips, and expects to make further breakthroughs in the coming months.
Nvidia's success is due in part to its software CUDA, which allows developers to closely connect with Nvidia chips. Sources said that the French antitrust regulator will accuse Nvidia of anti-competitive behavior. The regulator is concerned about the dependence of the generative AI industry on CUDA.
Intel is a member of the UXL Foundation. The UXL Foundation is an alliance of technology companies dedicated to developing an open-source project that allows computer code to run on any machine, regardless of the chip and hardware used.
Other members include Qualcomm (QCOM.US), Samsung Electronics and Arm Holdings (ARM.US).
Lavender added that Intel is contributing to Triton, a project led by OpenAI to build an open-source programming language that aims to improve the code efficiency of AI chips. AMD and Meta (META.US) also support the project.
Triton has already run on Intel's existing graphics processing units and will run on the company's next-generation AI chips.
He said:"Triton will create a fair competitive environment."
As of Thursday's U.S. stock market close, Intel fell 3.93% to $33.50, down 33% this year.