Intel is working with Facebook on AI-chip later this year

FILE PHOTO: The Intel logo is shown at E3, the world’s biggest video game industry convention in Los Angeles, California, USA June 12, 2018. REUTERS/Mike Blake

(Reuters) – Intel Corp said on Monday at the Consumer Electronics Show in Las Vegas that it is working with Facebook Inc to complete a new artificial intelligence chip in the second half of this year.

The chips of Intel’s gambit to keep hold of a fast-growing segment of artificial intelligence computing market, but will face competition from similar chips from Nvidia Corp. Inc Amazon Web Services unit.

The new chip will help with what the researchers call a consequence, that is the process of taking an artificial intelligence algorithm to take and use, for example, by tagging friends in photos automatically.

Intel processors currently dominate the market for machine learning, inference, analysts from Morningstar believe it will be worth $11.8 billion by 2021. In September, Nvidia launched its own inference chip to compete with Intel.

In November, Amazon also said that it was made of a inference-chip. Amazon’s chip is not a direct threat to Intel and Nvidia’s business, because it will not be the sale of the chips. Amazon sells services to the cloud customers that are running on the top of the chips starting next year. If Amazon relies on its own chips, it can deprive both Nvidia and Intel from a major customer.

Also at the Consumer Electronics Show on Monday, Intel said that Dell Technologies Inc. will feature intel’s next generation processors in the XPS line of laptops. The so-called 10-nanometer chips have been plagued by delays.

But Navin Shenoy, Intel’s data center chief, reiterated that the new chips will be available in laptops by the 2019 holiday shopping season and in data centers early next year.

Also at the conference, Amnon Shashua, head of the Intel, Mobileye self-driving car computer unit, said Mobileye has mapped all roads in Japan, with the help of cameras that are already embedded in vehicles produced by Nissan Motor Co Ltd, which come with Mobileye systems of the factory. Intel’s tech rivals, such as Alphabet Inc Apple Inc are collecting data and mapping by means of special vehicles with cameras mounted on the top of them.

Reporting by Stephen Nellis in San Francisco; Editing by Lisa Shumaker

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