Intel Says Newest Laptop Chips, Software Will Handle Generative AI

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
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Intel Says Newest Laptop Chips, Software Will Handle Generative AI

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)

Intel said on Tuesday that a new chip due in December will be able to run a generative artificial intelligence chatbot on a laptop rather than having to tap into cloud data centers for computing power.

The capability, which Intel was expected to show during a software developer conference held in Silicon Valley, could let businesses and consumers test ChatGPT-style technologies without sending sensitive data off of their own computer. It is made possible by new AI data-crunching features built into Intel's forthcoming "Meteor Lake" laptop chip and from new software tools that the company is releasing.

Intel executives also expect to say that the company is on track to deliver a successor chip called "Arrow Lake" next year, and that Intel's manufacturing technology will rival the best from Taiwan Semiconductor Manufacturing Co, as it has promised. Intel was once the best chip manufacturer, lost the lead, and now says it is on track to return to the front.

Intel has struggled to gain ground against Nvidia in the market for the powerful chips used in data centers to "train" AI systems such as ChatGPT. Intel said Tuesday that it was building a new supercomputer that would be used by Stability AI, a startup that makes image-generating software.

But the market for chips that will handle AI work outside data centers is far less settled, and it is there that Intel aimed to gain ground on Tuesday.

Through a new version of software called OpenVINO, Intel said that developers will be able run a version of a large language model, the class of technology behind products like ChatGPT, made by Meta Platforms on laptops. That will enable faster responses from chatbot and will mean that data does not leave the device.

"You can get a better performance, a lower cost and more private AI," Sachin Katti, senior vice president and general manager of Intel's network and edge group, told Reuters in an interview.

Dan Hutcheson, an analyst with TechInsights, told Reuters that business users who are weary of handing sensitive corporate data over to third-party AI firms might be interested in Intel's approach.

"AI is still in that class of technology where you need a PhD to do it," Hutcheson said. Intel Chief Gelsinger's challenge "is to democratize it. If he can pull that off, and make it so that anyone can use it, that creates a much bigger market for chips – the chips that he makes."



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.