Intel plans to ship an AI chip by the end of this year that uses cheaper memory and cooling technology than rival offerings from Nvidia and AMD, as the US chipmaker seeks to capitalize on a sharp turnaround in its fortunes.

Kevork Kechichian, who leads Intel’s data center group, told the FT that the company is “starting with the basics” as it tries to challenge its rivals in the booming market for semiconductors that power AI.

Its new “Crescent Island” graphics processing unit is designed to speed up “inference” tasks, the stage when a user makes their request, rather than the training of models, an area where Nvidia’s processors are dominant.

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