Another day, another cancellation from Intel regarding its GPU plans.

During Intel’s most recent earnings call, Michelle Holthaus, the interim co-CEO, revealed that the Falcon Shores AI GPU has effectively been scrapped. Designed to replace Intel’s Gaudi 3 chip, the new goals have shifted solely towards its next project, Jaguar Shores. Michelle stated, “Based on industry feedback, we plan to leverage Falcon Shores as an internal test chip only without bringing it to market.”

Intel is redirecting its efforts towards future generations of GPUs to address demands from AI data centers. The realization has emerged that simply delivering the silicon is insufficient. As explained by Holthaus, “One of the things that we’ve learned from Gaudi is it’s not enough to just deliver the silicon. We need to be able to deliver a complete rack scale solution.”

Intel’s previous GPU initiatives haven’t met expectations, hinting at the challenges it faces in the competitive landscape. The past cancellation of the Larrabee chip and the lukewarm reception of the Arc GPUs serve as reminders of Intel’s rocky history in the graphics space. Nonetheless, hints have surfaced regarding a potential new Celestial gaming GPU, which Intel’s graphics spokesperson, Tom Petersen, identified as nearing completion.

As Intel looks to the horizon, many remain hopeful that its future projects will finally yield a robust alternative within the GPU market.