Intel is effectively killing Falcon Shores, its next-generation GPU for high-performance computing and AI workloads.

During its fourth-quarter earnings call on Thursday, Intel disclosed that Falcon Shores was being scrapped as a commercial product. The new plan is to use Falcon Shores as an internal test chip as the company focuses on rack-level AI solutions built around Jaguar Shores, which was supposed to be Falcon Shores' successor.

Intel's next-generation AI and HPC GPU will only be used internally, Jaguar shores will be the real successor for Gaudi 3 in the AI space.

Falcon Shores had already undergone multiple revisions before its cancellation. Initially envisioned as a modular "XPU" capable of mixing and matching CPU and GPU tiles, Intel scaled the project back to a standard GPU in 2023 after it scrapped "Rialto Bridge,

Intel says its new Falcon Shores AI accelerator won't see the light of day, shifts its focus into next-gen Jaguar Shores 'rack-scale' solutions.

In the first earnings report since former CEO Pat Gelsinger left the company, Intel’s fourth-quarter revenue was down seven percent year-on-year (YoY) to $14.3 billion, whilst full-year revenue declined by two percent YoY to $53.1bn.

If Intel hopes to survive the next few years as a freestanding company and return to its role as innovator, it can not afford to waste its time and it

Holthaus also revealed that Intel plans to use Falcon Shores as an internal test chip, not launching it in the market. This move is part of the company's strategy to streamline its roadmap and optimize resources. "AI data center...is an attractive market for us," Holthaus said during the call. "But I am not happy with where we are today."