The most prominent AI models run on Nvidia, like OpenAI's ChatGPT. GPUs in the cloud. It's one reason Nvidia stock has been up nearly 230 per cent year-to-date while Intel shares are up 68 per cent.

And it's why companies like AMD and Intel have announced chips that they hope will attract AI companies away from Nvidia's dominant position in the market.

While the company was light on details, Gaudi3 will compete with Nvidia's H100, the leading choice among companies that build vast farms of the chips to power AI applications, and AMD's forthcoming MI300X when it starts shipping to customers in 2024. Intel has been making Gaudi chips since 2019, when it bought a chip developer called Habana Labs.

Intel's Gaudi3 AI accelerator, due to arrive in 2024, will have two-phase liquid cooling developed in partnership with Vertiv.

The systems will have a pumped two-phase (P2P) cooling system designed to remove up to 160kW of heat, using water from 17°C up to 45°C (62.6°F to 113°F). An alternative for air-cooled data centres up to 35°C (95°F) will work up to 40kW of heat load.

As Intel CEO Pat Gelsinger highlighted the role of AI in transforming the computing landscape, the company also unveiled the Core Ultra processors, tailored for Windows laptops and PCs. By integrating an AI-centric component called the NPU, or Neural Processing Unit, these chips promise to deliver swifter performance for AI-driven tasks, albeit on a scale suited for individual users rather than AI data centres.