Intel Aims For $1 Billion Software Revenue By 2027, According To CTO Greg Lavender
Intel's Chief Technology Officer (CTO) Greg Lavender has stated that the company is making smooth progress in the software domain. By the end of 2027, the cumulative revenue from its software business could reach $1 billion.
In 2021, Intel achieved over $100 million in software revenue. It was during this year that CEO Pat Gelsinger brought Lavender from cloud computing company VMware to guide the chipmaker's software strategy. Since then, Intel has acquired three software companies.
I have a goal of getting to $1 billion of software and developer cloud subscription revenue, Lavender said, I think I'm on track to hit this goal by the end of 2027 ... maybe sooner.
Intel generated $54 billion in revenue in 2023, offering a range of software services and tools for rent, from cloud computing to artificial intelligence. Lavender said that his strategy is to focus on providing services in artificial intelligence, performance, and security, and the company has been investing in these three areas.
Additionally, he also stated that Intel has seen lots of demand for its upcoming Gaudi 3 chip, and he believes this can help the company take second place in the AI chip market.
So far, Intel and AMD's AI processors have not made much progress in undermining Nvidia's dominant position. In 2023, Nvidia controlled about 83% of the data center chip market.
Nvidia's success is partly related to its CUDA software, which closely ties developers to Nvidia's chips. Lavender said that Intel is supporting open-source initiatives aimed at building software and tools that can power various AI chips, and expects further breakthroughs in the coming months.
There have been reports that the French antitrust regulator will accuse Nvidia of anti-competitive behavior. The regulator is concerned about the generative AI industry's dependence on CUDA.
Intel is one of the members of the UXL Foundation. This is an alliance of technology companies developing an open-source project aimed at making computer code run on any machine, regardless of the chips and hardware used by the machine.
Lavender added that Intel is contributing to Triton, an initiative led by OpenAI to establish an open-source programming language designed to improve the efficiency of AI chip code. AMD and Meta also support this project.
It is reported that Triton is already running on Intel's existing graphics processing units and will work on the company's next-generation AI chips.
Triton is going to level the playing field, he said.