Intel Q4 Datacenter AI Sales Up 15% Despite New Arm, Alibaba AI CPUs
Intel’s Datacenter and AI Group revenues rose to $4.74 billion in Q4 2025, up 15% sequentially on strong demand for Xeon 6 (Granite Rapids) processors. Arm’s AGI CPU and Alibaba’s RISC-V XuanTie C950 unveilings add new competition in data-center AI workloads worldwide.
1. Datacenter and AI Group Revenue Growth
Intel reported $4.74 billion in Q4 2025 Datacenter and AI Group revenue, marking a 15% sequential rise. This surge was driven by solid uptake of Xeon 6 processors (codenamed Granite Rapids) for traditional servers and storage compute.
2. Rising Competition from New AI CPU Releases
Arm unveiled its AGI CPU for agentic AI with plans for volume production in H2 2026 on TSMC’s 3nm process and partnerships like Meta and OpenAI. Alibaba’s T-Head introduced the XuanTie C950 RISC-V CPU running at 3.2 GHz with over threefold speed gains versus its predecessor, both moves posing fresh challenges to Intel’s data-center CPU dominance.