On Tuesday, Intel Corp (INTC.O) unveiled Gaudi2, a new artificial intelligence processor that the chipmaker hopes could help it break into the AI chip market, which is presently dominated by Nvidia Corp. (NVDA.O).

Gaudi2 is Habana Labs’ second-generation CPU, which Intel bought from an Israeli AI semiconductor manufacturer for $2 billion in late 2019. AI chip companies have attracted considerable financing in recent years as AI computing has become one of the fastest growing sectors for data centres.

Nvidia’s software platform CUDA is used by many AI researchers and companies, thus grabbing market share away from them has been challenging. According to Reuters, Intel has been focusing on software development in addition to new chips for AI computing.

“CUDA is not a moat that Nvidia can rely on for very long,” said Eitan Medina, chief business officer of Habana Labs, noting that Intel’s software platform is an open standard that can be downloaded and used for free via GitHub, a software development site. “Now the question is, who can do the job well?”

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