Intel is effectively killing Falcon Shores, its next-generation GPU for high-performance computing and AI workloads.

Intel has abandoned its plans for the Falcon Shores AI chip, shifting focus to Jaguar Shores for system-level solutions in the AI data center market. Interim co-CEO Michelle Johnston Holthaus acknowledged that Gaudi chips have not met expectations and emphasized the need for complete rack scale solutions to address customer demands for efficient and cost-effective compute.

Intel said it no longer plans to sell its next-generation Falcon Shores AI accelerator chip that was due later this year so that it can focus on developing a “system-level solution at rack scale” with a successor chip it’s calling Jaguar Shores.

Holthaus also revealed that Intel plans to use Falcon Shores as an internal test chip, not launching it in the market. This move is part of the company's strategy to streamline its roadmap and optimize resources. "AI data center...is an attractive market for us," Holthaus said during the call. "But I am not happy with where we are today."

Intel's next-generation AI and HPC GPU will only be used internally, Jaguar shores will be the real successor for Gaudi 3 in the AI space.