Intel is ‘still committed to Arc,’ but with fewer discrete GPUs and more integrated graphics
Intel’s Arc graphics cards have had a rocky start. After much anticipation and several delays, the Alchemist line of discrete GPUs finally launched in late 2022, but they have failed to capture a significant share of the market. While Intel remains committed to Arc, the company’s focus is shifting towards integrated graphics with a leaner approach to discrete GPUs.
“Arc is going to have a strong role to play going forward,” Intel’s CEO Pat Gelsinger said in a recent investor call. “We’re excited about it, we’re still committed to it, we’re going to learn as we go.”
However, Gelsinger’s “learning as we go” comment signals a shift in strategy. While Intel remains committed to the Arc brand, it’s clear the company will be scaling back its ambitions for discrete graphics cards. The company is planning to focus on expanding its offerings of integrated graphics. The idea is that integrated GPUs will become the more mainstream solution, while discrete GPUs remain aimed at niche use cases such as gaming and high-end professional applications.
The strategic shift reflects Intel’s struggles in the GPU market. Arc Alchemist struggled to gain market share against the dominant Nvidia and AMD. The cards have received mixed reviews with some praising the value proposition while others found their performance to be lacking. One major drawback is that the drivers are still not perfect, hindering their appeal to serious gamers.
“I think Intel needs to really get their software up to speed if they’re going to try to gain some market share,” says Patrick Moorhead, president of Moor Insights & Strategy, a tech market analysis firm. “The current driver issues really are impacting adoption and impacting developer and gaming adoption. The driver is everything. People won’t tolerate it if they can’t get their games to work well, or they can’t play with the latest features.”
It seems Intel agrees. Rather than competing head-to-head with Nvidia and AMD on discrete GPUs, Intel plans to carve out a unique path through integrated graphics. With their powerful CPU lineup and an expanding range of processors specifically designed for AI, machine learning, and deep learning applications, Intel has the potential to dominate the integrated graphics space.
“The integrated graphics market is exploding, particularly for data centers and for other types of AI workloads,” says Bob O’Donnell, president of TECHnalysis Research, a tech market analysis firm. “We are seeing an increasing demand for a powerful integrated graphics solutions for things like running complex artificial intelligence algorithms.”
While Intel plans to shift focus, they are still planning to release new Arc discrete GPUs. It’s just that they won’t be the company’s primary focus. The Intel Xe-HPG Architecture, used for Arc graphics, was built with scalability in mind and it has significant potential for future expansion. This shift is seen as a way for Intel to focus on its strengths. Integrated graphics are an area where the company already enjoys considerable success and they are now focused on increasing their presence in this rapidly growing segment.
Intel’s strategy can be understood by looking at their existing integrated graphics. They’re already being used for a variety of purposes and the transition to discrete graphics hasn’t exactly been smooth. Shifting back to what works can give them a solid foundation for success and it would provide them with a strong starting point from which to further explore discrete graphics capabilities.
What this means for the future of Intel’s Arc GPU ambitions is not entirely clear, but one thing is for sure: Intel’s commitment to delivering quality integrated graphics is firm and they see it as the future of GPU computing.
