Intel’s Gaudi 3 AI Chips Secure Integration in Dell’s PowerEdge Servers
Intel’s Gaudi 3 AI accelerators have taken a significant step toward mainstream adoption with their integration into Dell’s PowerEdge XE7740 servers, marking one of the first large-scale commercial deployments of the technology. The move, detailed in a Dell announcement, underscores Dell’s strategy to deliver cost-efficient, scalable AI solutions for enterprise data centers, while also giving Intel a much-needed foothold in a market where NVIDIA and AMD have thus far dominated.
The PowerEdge XE7740 server supports up to 8 Gaudi 3 AI chips in a single configuration, leveraging a 1:1 networking interface to simplify integration and maximize efficiency. Designed with AI workloads in mind, the XE7740 is optimized for modern generative AI and LLM frameworks, with official support for Llama 4, Llama 3, Deepseek, Phi 4, Qwen 3, Falcon 3, and more.
Dell highlights three key advantages of integrating Gaudi 3 into its servers:
Cost Efficiency: The XE7740 offers a competitive price-to-performance ratio, positioning itself as a lower-cost alternative to NVIDIA GPU-based systems.
Scalability: With modular configurations and optional accelerator bridging, enterprises can scale their AI capabilities incrementally, tailoring investments to project growth.
Compatibility: Built for enterprise data centers with strict power and cooling requirements, the XE7740 ensures seamless deployment without the need for expensive retrofits.
While Dell has not disclosed benchmark performance figures, the company positions Gaudi 3 as a balanced solution for organizations that want to accelerate AI workloads without incurring the higher costs often associated with NVIDIA hardware.
Despite this milestone, Intel’s AI division still lags behind its competitors. NVIDIA continues to dominate the AI accelerator market with its H100 and upcoming Blackwell GPUs, while AMD’s MI300 series has seen strong adoption across cloud service providers. Intel’s Gaudi lineup has historically struggled with limited uptake, and until now, it has rarely been featured in mainstream CSP offerings.
The cancellation of Intel’s ambitious Falcon Shores project earlier this year has shifted focus toward Jaguar Shores, which is expected to serve as Intel’s next major push into AI infrastructure. Jaguar Shores will represent the company’s first rack-scale solution, aimed at competing more directly with both AMD and NVIDIA in the high-performance enterprise AI market.
For Intel, Dell’s decision to feature Gaudi 3 in its PowerEdge XE7740 marks both a symbolic and practical step forward. It demonstrates that the company can still secure meaningful partnerships in the AI sector while it works toward more competitive next-generation architectures.
Do you think Dell’s adoption of Gaudi 3 could help Intel finally establish a real presence in AI data centers, or will NVIDIA and AMD remain too far ahead to catch?
