Intel Launches 144-Core Server CPU to Take on AMD and ARM

Sierra Forest has arrived.

The era of Intel (INTC 2.50%) being way behind in server central processing unit (CPU) core counts is coming to an end. The company has officially launched Sierra Forest, a CPU that features as many as 144 of Intel’s power-sipping E-cores. A version with a whopping 288 cores is coming sometime next year.

A necessary product

While Intel’s more traditional server CPUs have their place, many types of workloads don’t benefit from more powerful cores. Workloads that primarily move data, for example, need a limited amount of computing power to get the job done. Certain cloud workloads, content delivery networks, and microservices could also work well on weaker cores.

Sierra Forest focuses on maximizing the core density rather than the performance per core. For customers, this high core density allows more cores to be packed into a single server rack. That translates into a smaller data center footprint and a lower total cost of ownership.

Intel is promising significant gains in power efficiency and space savings. Compared to its Xeon 8280, which launched in 2018 and would be a realistic candidate for upgrades to Sierra Forest, the company claims that three racks of the older chip could be consolidated into a single rack of the newer chip. Sierra Forest can deliver rack-level performance gains of up to 4.2x and performance-per-watt gains of up to 2.6x.

Intel is also pitching its new server CPUs as an ideal pairing for artificial intelligence  (AI) accelerators in a cluster. While AI accelerators do most of the work running AI training or inference workloads, a head node running various management and monitoring software is often necessary for the proper functioning of the cluster.

Late to the party

Rival Advanced Micro Devices (AMD 3.86%) is one step ahead of Intel when it comes to server CPUs with ultra-high core counts. AMD’s mainline server CPU lineup goes up to 96 cores, and its lower-power “Bergamo” lineup raises the bar to 128 cores. Bergamo launched about a year ago.

Server CPUs based on technology from Arm Holdings are also out in the wild. Cloud giants including Microsoft and Alphabet are designing their own Arm-based server CPUs aimed at improving power efficiency and performance, and start-up Ampere already sells server CPUs with up to 192 cores.

While Intel is late to the party, the company is moving fast. Sierra Forest is manufactured partly using the Intel 3 process node and is available now. Clearwater Forest, the follow-up to Sierra Forest, will move to the Intel 18A process node. Intel expects the Intel 18A process to enable it to regain technological leadership over TSMC.

Clearwater Forest wafers were rolling off Intel’s production lines back in February, and the chip is expected to ship sometime in 2025. By moving to the Intel 18A process, Clearwater Forest will use the new RibbonFET transistor and backside power delivery, both of which should deliver significant performance and efficiency gains.

A big year for Intel

In addition to Sierra Forest, Intel will launch its powerful Granite Rapids server CPUs in the third quarter. Granite Rapids is a more traditional server CPU that aims to maximize performance per core. While details are scarce, rumors suggest that Granite Rapids might boast a core count as high as 128.

AMD will be launching new server CPUs this year, as well, with the mainline chips going up to 128 cores and the efficiency chips going up to 192 cores. By using a 3nm process from TSMC, AMD may have an advantage this time around. However, once Intel 18A is in production, the advantage could swing to Intel for future generations.

Intel has been bleeding market share for years, and the rising prominence of Arm-based server CPUs isn’t helping. Sierra Forest may mark a turning point for Intel’s server business. If the company can move quickly enough and launch products and process nodes on time, it can regain the edge it once had.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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