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Intel's Crescent Island AI chip to rival Nvidia and AMD with cheaper memory and air cooling

ai-technology · 2026-06-01

Intel plans to ship its new AI chip, Crescent Island, by the end of this year. The chip uses cheaper LPDDR5 memory and air cooling, contrasting with Nvidia and AMD's expensive high-bandwidth memory and liquid cooling. Crescent Island targets inference tasks, not training, where Nvidia dominates. This follows Intel's failed Gaudi GPU for training. Kevork Kechichian, Intel's data center chief, said the chip will ship in limited quantities by year-end after 18 months of development. The effort is Intel's first AI infrastructure push under CEO Lip-Bu Tan, who replaced Pat Gelsinger last year.

Key facts

  • Intel plans to ship Crescent Island AI chip by end of 2026.
  • Crescent Island uses LPDDR5 memory and air cooling, cheaper than Nvidia and AMD.
  • Chip targets inference tasks, not training.
  • Previous Gaudi GPU for training had poor sales and was cancelled.
  • Kevork Kechichian leads Intel's data center group.
  • Crescent Island developed over 18 months.
  • Intel aims to challenge Nvidia and AMD in AI chip market.
  • Lip-Bu Tan is Intel's CEO, replacing Pat Gelsinger.

Entities

Institutions

  • Intel
  • Nvidia
  • AMD
  • Arm
  • Financial Times

Locations

  • United States

Sources