Intel CEO Lip‑Bu Tan announced on Tuesday that the company will enter the GPU market, a segment long dominated by Nvidia. Tan said he has just hired a chief GPU architect, whose expertise convinced him to accelerate development. The move follows Qualcomm veteran Eric Demmers joining Intel earlier this year.

Tan placed the effort under Kevork Kechichian, Intel’s data‑center chip chief, linking GPU design to the firm’s server strategy. He told Reuters at the Cisco AI Summit that customers are already engaging with Intel Foundry to explore the new 14A process node, with volume production slated for later this year.

Analysts see Intel’s entry as a bid to diversify revenue beyond its PC and data‑center chips, while leveraging its advanced manufacturing to challenge Nvidia’s pricing power. If early adopters commit to volume, Intel could unlock a new growth engine, but success hinges on delivering performance parity and a compelling ecosystem for developers.