For much of the generative AI boom, GPUs have dominated discussions around AI infrastructure as companies raced to build large language models, with Nvidia Corp. (NASDAQ:NVDA) emerging as the biggest beneficiary, while CPUs took a back seat.
On Thursday, Intel Corp.’s (NASDAQ:INTC) leadership argued that the next phase of AI could look different.
Speaking on the company’s earnings call, CFO David Zinsner said Intel now sees CPU and GPU deployments nearing parity on a unit basis. “The ratio of CPU to GPU, we now believe we’re almost in parity at this point,” Zinsner said. “And could eventually even skew more to CPUs on a unit basis.”
His comments reflect Intel’s view that AI workloads are shifting beyond model training. While training large language models requires the massive parallel processing capabilities of GPUs, running those models in production—known as inference—relies on a broader mix of computing resources, including CPUs.
CEO Backs CPU Argument
CEO Lip-Bu Tan echoed that argument.
“As AI expands from training to inference and increasingly to agentic and multi-agent systems, general purpose server CPU density continues to increase,” he said. “Our core server CPU franchise is growing faster than ever.”
The Reasoning Behind CPUs Outpacing GPUs
Intel pointed to several metrics supporting its outlook. The company reported $6.3 billion in second-quarter data center AI revenue, up 59% year over year. It also said server growth was the strongest in its history, with Xeon 6 among its fastest-ramping product launches and demand continuing to exceed supply.
During the call, an analyst referenced an industry projection estimating the CPU total addressable market could reach $220 billion by 2030. While Zinsner did not comment on the specific figure, he did not challenge the broader discussion around growing CPU demand.
Intel’s comments do not suggest GPUs are becoming less important. Demand for GPU-powered AI training remains strong, particularly as companies continue building larger and more capable models. Instead, Intel is making the case that as AI applications move into deployment at scale, CPUs could account for a larger share of the infrastructure supporting those workloads.
Intel Q2 Earnings
Intel reported second-quarter revenue of $16.13 billion, surpassing analysts’ estimate of $14.42 billion. Adjusted earnings were $0.42 per share, beating the consensus estimate of $0.21, according to Benzinga Pro.
Intel stock fell 2.33% to close at $100.23 but climbed 4.37% in after-hours trading following the company’s earnings announcement.
Benzinga Edge Rankings show Intel has a Momentum score in the 99th percentile. The stock has a negative short-term price trend but positive medium- and long-term price trends.
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