Intel’s cumulative software sales are projected to reach a significant milestone of $1 billion by the end of 2027.
Intel’s software division is experiencing positive growth, with projections indicating a potential cumulative revenue of $1 billion by the end of 2027, as shared by Chief Technology Officer Greg Lavender in a recent interview with Reuters.
Intel generated over $100 million in software revenue during
2021. This was the year that CEO Pat Gelsinger recruited Ms. Lavender from the
cloud computing company VMware to lead Intel’s software strategy. Since then,
Intel has acquired three software companies.
"I have a goal of getting to $1 billion of software and
developer cloud subscription revenue," he said. "I think I'm on track
to hit this goal by the end of 2027 ... maybe sooner."
Intel, a global technology leader, generated $54 billion in
revenue in 2023. The company provides a comprehensive suite of software
services and tools for hire, encompassing cloud computing, artificial
intelligence, and other cutting-edge technologies.
“Our strategic focus is on delivering AI, performance, and
security services. We have been consistently investing in these three domains.”
-Lavender said
In a separate statement, Lavender indicated that Intel is
experiencing significant demand for its forthcoming Gaudi 3 chip. He expressed
his belief that this product has the potential to propel the company to the
second position in the AI chip market.
The market penetration of AI processors from Intel and
Advanced Micro Devices has been limited in comparison to the dominance of
Nvidia, which held approximately 83% of the data center chip market share in
2023.
Lavender added that Intel is actively supporting open-source
initiatives that aim to develop software and tools capable of powering a
diverse range of AI chips. The company anticipates significant advancements in
this area in the upcoming months.
A portion of Nvidia's achievements can be attributed to its
software CUDA, which fosters developer loyalty to Nvidia chips. Sources
indicate that France’s antitrust regulator intends to charge Nvidia for
potential anti-competitive conduct. The regulatory body has expressed concerns
regarding the generative AI industry’s reliance on CUDA.
Intel is a member of the UXL Foundation, a collaborative
effort among technology companies to develop an open-source initiative that
seeks to ensure the compatibility of computer code across various platforms,
irrespective of the underlying chip and hardware configurations.
Other esteemed members include Qualcomm (QCOM.O), Samsung
Electronics, and Arm Holdings.
Intel is making a valuable contribution to Triton, a
collaborative initiative spearheaded by OpenAI. This open-source programming
language aims to significantly improve code efficiency across various AI chips.
Notably, AMD and Meta are also extending their support to this project.
Triton, an AI software platform, is currently operational on
Intel’s existing graphics processing units and is anticipated to be compatible
with the company’s upcoming generation of AI chips.
“Triton will serve as an equalizer in the competitive
landscape,” he stated.