Intel Battles AMD with New Data Center Chips 

Intel CEO Patrick Gelsinger delivers his keynote speech during the COMPUTEX show in Taipei, Taiwan, 04 June 2024. (EPA)
Intel CEO Patrick Gelsinger delivers his keynote speech during the COMPUTEX show in Taipei, Taiwan, 04 June 2024. (EPA)
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Intel Battles AMD with New Data Center Chips 

Intel CEO Patrick Gelsinger delivers his keynote speech during the COMPUTEX show in Taipei, Taiwan, 04 June 2024. (EPA)
Intel CEO Patrick Gelsinger delivers his keynote speech during the COMPUTEX show in Taipei, Taiwan, 04 June 2024. (EPA)

Intel launched its next generation Xeon server processors on Tuesday, as it looks to claw back data center market share and revealed that its Gaudi 3 artificial intelligence accelerator chips would be priced much lower than its rivals' chips.

The sixth generation Xeon chips are crucial for Intel, which has been steadily losing data center market share to Advanced Micro Devices (AMD).

Intel's share of the data center market for x86 chips has declined 5.6 percentage points over the past year to 76.4%, with AMD now holding 23.6%, according to data from Mercury Research.

Stumbles with Intel's manufacturing process have allowed AMD to take business as it uses Taiwan Semiconductor Manufacturing Co to fabricate its chips.

The Xeon 6 server processors come in two main flavors, a larger, more powerful version, and an "efficiency" model that Intel pitched as a replacement for older-generation chips.

To achieve the same level of computing power as its second generation chips, they will now require about 67% fewer server racks with the efficiency model, which is designed to serve media, websites and perform database calculations.

"Simply put, performance up, power down," Intel Chief Executive Pat Gelsinger said at the Computex trade fair in Taipei, where he gave a presentation of the server.

The more powerful performance model is designed to run the computations necessary to generate responses from complex AI models and other tasks that need the increased horsepower.

The "efficiency" Xeon chip is available on Tuesday, with the "performance" model arriving in the third quarter. Intel plans to launch additional variations next year. The sixth generation chip was delayed a year because the company wanted to use a different manufacturing process.

On a briefing call with reporters, Intel said that a Gaudi 3 accelerator kit, which includes eight of the AI chips, sells for about $125,000, and the earlier generation Gaudi 2 has a list price of $65,000.

Speaking in Taipei, Gelsinger said the prices looked "pretty compelling", especially compared with competitors.

"In other words, it crushes the competition."

AMD and Nvidia do not discuss pricing of their chips. A comparable HGX server system with eight Nvidia H100 AI chips can cost more than $300,000, according to custom server vendor Thinkmate.

Intel revealed the details of the Gaudi 3 AI chip in April and has positioned it as a considerably cheaper and viable alternative to Nvidia's H100 chips.

Also on Tuesday, Intel said its next generation laptop chip, called Lunar Lake, uses 40% less power and has more a powerful AI processor in it. Intel said it will ship the chip in the third quarter.



Video Game Actors Are Voting on a New Contract. Here’s What It Means for AI in Gaming

A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
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Video Game Actors Are Voting on a New Contract. Here’s What It Means for AI in Gaming

A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)
A picketer holds a sign for the SAG-AFTRA video game strike at Warner Bros. Games headquarters on Aug. 1, 2024, in Burbank, Calif. (AP)

An 11-month strike by video game performers could formally end this week if members ratify a deal that delivers pay raises, control over their likenesses and artificial intelligence protections.

The agreement feels "like diamond amounts of pressure suddenly lifted," said Sarah Elmaleh, a voice actor and chair of the Screen Actors Guild-American Federation of Television and Radio Artists' interactive branch negotiating committee.

Union members have until Wednesday at 5 p.m. Pacific to vote on ratifying the tentative agreement.

Voice and body performers for video games raised concerns that unregulated use of AI could displace them and threaten their artistic autonomy.

"It’s obviously far from resolved," Elmaleh said. "But the idea that that we’re in a zone where we might have concluded this feels like a lightening and a relief."

AI concerns are especially dire in the video game industry, where human performers infuse characters with distinctive movements, shrieks, falls and plot-twisting dialogue.

"I hope and I believe that our members, when they look back on this, will say all of the sacrifices and difficulty we put ourselves through to achieve this agreement will ultimately be worth it because we do have the key elements that we need to feel confident and moving forward in this business," said Duncan Crabtree-Ireland, the SAG-AFTRA national executive director and chief negotiator.

Here’s a look at the contract currently up for vote, and what it means for the future of the video game industry.

How did the current strike play out? Video game performers went on strike last July following nearly two years of failed negotiations with major game studios, as both sides remained split over generative AI regulations.

More than 160 games signed interim agreements accepting AI provisions SAG-AFTRA was seeking, the union said, which allowed some work to continue.

The video game industry is a massive global industry, generating an estimated $187 billion in 2024, according to game market forecaster Newzoo.

"OD," and "Physint" were two games delayed due to the strike during the filming and casting stage, video game developer Hideo Kojima wrote in December. Riot Games, a video game developer, announced that same month that some new skins in "League of Legends" would have to use existing voice-overs, since new content couldn't be recorded by striking actors. Skins are cosmetic items that can change the visual appearance of a player and is sometimes equipped with new voice-overs and unique recorded lines.

The proposed contract "builds on three decades of successful partnership between the interactive entertainment industry and the union" to deliver "historic wage increases" and "industry-leading AI provisions," wrote Audrey Cooling, a spokesperson for the video game producers involved in the deal.

"We look forward to continuing to work with performers to create new and engaging entertainment experiences for billions of players throughout the world," Cooling wrote.

Video game performers had previously gone on strike in October 2016, with a tentative deal reached 11 months later. That strike helped secure a bonus compensation structure for voice actors and performance capture artists. The agreement was ratified with 90% support, with 10% of members voting.

The proposed contract secures an increase in performer compensation of just over 15% upon ratification and an additional 3% increase each year of the three-year contract.

How would AI use change in video games? AI concerns have taken center stage as industries across various sectors attempt to keep up with the fast-evolving technology. It’s a fight that Hollywood writers and actors undertook during the historic film and TV strikes that forced the industry to a stop in 2023.

"In the last few years, it’s become obvious that we are at an inflection point where rules of the road have to be set for AI, and if they aren’t, the consequences are potentially very serious," Crabtree-Ireland said. "I think that really made this negotiation extra important for all of us."

SAG-AFTRA leaders have billed the issues behind the labor dispute — and AI in particular — as an existential crisis for performers. Game voice actors and motion capture artists’ likenesses, they say, could be replicated by AI and used without their consent and without fair compensation.

The proposed contract delineates clear restrictions on when and how video game companies can create digital replicas, which use AI to generate new performances that weren't recorded by an actor.

Employers must obtain written permission from a performer to create a digital replica — consent which must be granted during the performer’s lifetime and is valid after death unless otherwise limited, the contract states. The time spent creating a digital replica will be compensated as the same amount of work time it would have required for a new performance.

The agreement also requires the employer to provide the performer with a usage report that details how the replica was used and calculates the expected compensation.

Elmaleh, who has been voice acting since 2010 and had to turn down projects throughout the strike, said securing these gains required voice actors bring vulnerability and openness to the bargaining table.

"We talked a lot about the personal, the way it affects our displacement as workers and just the sustainability of our careers," Elmaleh said. "Our work involves your inner child. It’s being very vulnerable, it’s being playful."

What’s next for the video game industry? The tentative agreement centers on consent, compensation and transparency, which union leaders say are key elements needed for the industry to keep progressing.

As the contract is considered by union members, Elmaleh and Crabtree-Ireland said further work needs to be done to ensure the provisions are as broad as necessary.

"Even though there’s a deal that’s been made now, and we’ve locked in a lot of really crucial protections and guardrails, the things that we haven’t been able to achieve yet, we’re going to be continuing to fight for them," Crabtree-Ireland said. "Every time these contracts expire is our chance to improve upon them."

Elmaleh said she hopes both the video game companies and performers can soon work collaboratively to develop guidelines on AI as the technology evolves — a process she said should start well the proposed contract would expire in October 2028.

Leading negotiations has felt like a full-time job for Elmaleh, who took on the role in a volunteer capacity. As the efforts die down, she said she anxiously anticipates returning to video game acting in a landscape that is safer for performers.

Voice acting "is core to who I am. It’s why I fought so hard for this. I wouldn’t do this if I didn’t love what I do so much. I think it’s so special and worthy of protection," she said.