Introduction
Intel recently made waves in the tech industry by unveiling its latest flagship processor, the Xeon 6980P, as part of the Granite Rapids series.
Priced at an astonishing $17,800, this new CPU sets a record for the most expensive standard x86 processor available on the market.
The economics of computing are more complex than straightforward comparisons. For instance, while the previous-generation Emerald Rapids Xeon 8592+ (64 cores, 128 threads) had a cost of around $181 per core, the latest Granite Rapids Xeon 6980P is priced at approximately $139 per core, providing faster cores at a lower cost per core.
As enterprises increasingly demand high-performance computing solutions, this launch reflects Intel’s strategic positioning in the competitive landscape against AMD.
Overview of Intel Xeon 6980P
- Launch Date: The Xeon 6980P was officially introduced on September 24.
- Cores and Performance: This processor features 128 high-performance cores and supports multi-threading.
- Pricing Benchmark: At $17,800, it surpasses AMD’s EPYC Genoa 9654, which offers 96 cores at $11,805.
- Market Position: This launch marks Intel’s renewed commitment to high-performance computing amid intense competition.
- Future Prospects: Upcoming releases from AMD, specifically the Zen 5 EPYC Turin chips, will further define the market dynamics.
The Rise of the Granite Rapids Series
The Xeon 6980P is part of Intel’s Granite Rapids series, a new line designed to deliver exceptional performance for data centers and high-performance computing applications.
The introduction of the Xeon 6980P aligns with Intel’s strategy to provide advanced solutions for enterprises requiring significant computing power.
Unmatched Core Count
With 128 cores and 256 threads, the Xeon 6980P sets a new standard for core density in a single CPU.
This architecture allows for parallel processing, making it ideal for demanding workloads, including AI, data analytics, and virtualization.
Price Comparison with AMD
At $17,800, the Xeon 6980P not only marks a new high in Intel’s pricing strategy but also sets it apart from competitors like AMD.
The AMD EPYC Genoa 9654 offers 96 cores for $11,805, translating to a price of $123 per core, whereas the Xeon 6980P costs $139 per core.
This significant price differential raises questions about value and performance for enterprises considering an upgrade.
Pricing Breakdown of Intel’s Granite Rapids Lineup
| Model | Price | Price Per Core | Cores/Threads | Base/Boost (GHz) | TDP (W) | L3 Cache (MB) |
|---|---|---|---|---|---|---|
| Xeon 6980P | $17,800 | $139 | 128 / 256 | 2.0 / 3.9 | 500 | 504 |
| Xeon 6979P | $15,750 | $131 | 120 / 240 | 2.1 / 3.9 | 500 | 504 |
| Xeon 6972P | $14,600 | $152 | 96 / 192 | 2.4 / 3.9 | 500 | 480 |
| Xeon 6952P | $11,400 | $119 | 96 / 192 | 2.1 / 3.9 | 400 | 480 |
| Xeon 6960P | $13,750 | $191 | 72 / 144 | 2.7 / 3.9 | 500 | 432 |
Comparative Pricing Insights
- The Xeon 6979P, priced at $15,750, features 120 cores and costs $131 per core.
- The Xeon 6972P costs $14,600 with a core price of $152, exceeding the AMD offering by a notable margin.
- In contrast, the Xeon 6952P is more competitively priced at $11,400, making it an attractive option for those requiring 96 cores.
Intel’s Competitive Edge
Intel has struggled to keep pace with AMD in terms of core count and multi-threaded performance over the past few years. This pricing strategy, along with the introduction of the Xeon 6980P, signifies a shift in Intel’s approach to regain market share.
Market Demand for High Performance
The enterprise landscape is rapidly evolving, with companies seeking more processing power to handle data-intensive applications. The Xeon 6980P’s high core count makes it well-suited for such applications.
Historical Context of Pricing
Intel’s pricing strategy has varied over the years. For instance, the Xeon Scalable 8280L, launched in 2019 for $17,906, saw a quick price reduction. Intel’s historical pricing for its premium models often reflected its market strategy to balance demand with competition.
AMD’s Competitive Offerings
AMD has strategically priced its EPYC series to gain market share, offering competitive performance at lower prices. The upcoming Zen 5 EPYC Turin chips, expected next week, will challenge Intel’s position further. These chips could provide higher performance at lower prices, increasing pressure on Intel’s new offerings.
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Future Outlook
Intel’s Xeon 6980P represents a bold move in the high-performance CPU market. However, its success will depend on several factors:
- Performance Metrics: The actual performance of the Xeon 6980P in real-world applications will determine its value.
- AMD’s Response: How AMD positions its upcoming Zen 5 EPYC Turin chips will influence market dynamics.
- Adoption Rates: Enterprise adoption of the Xeon 6980P will provide insight into its reception in the market.
- Technological Advancements: Future developments in CPU architecture will impact both companies’ offerings.
- Ecosystem Support: The availability of compatible hardware and software will affect the Xeon 6980P’s usability.
Conclusion
Intel’s Xeon 6980P, priced at $17,800, makes a bold statement in the competitive landscape of high-performance processors. While its price sets a new benchmark for x86 CPUs, its success will hinge on performance metrics and competitive responses from AMD. As the tech industry continues to evolve, the Xeon 6980P stands at the forefront of Intel’s efforts to reclaim its position as a leader in the CPU market.
This launch highlights not only the increasing demands for processing power but also the ongoing rivalry between Intel and AMD. As enterprises look for solutions to handle complex workloads, the Xeon 6980P could play a pivotal role in shaping the future of high-performance computing.
By strategically positioning the Xeon 6980P as a premium offering, Intel aims to attract enterprise customers seeking advanced computing solutions. Whether it succeeds in justifying the high price tag remains to be seen, but one thing is certain: the race for CPU supremacy is far from over.
