Thursday, July 28th 2022

Intel to Shut Down Optane Memory Business, Retire 3D XPoint Memory

Intel's pioneering 3D X-point Memory, which sought to bridge the gap between non-volatile Flash memory, and volatile DRAM, stares at an untimely demise, as Intel plans to wind up both its Optane Memory business, as well as further development of 3D XPoint. The industry's reception of Optane Memory has been lukewarm; while cheap NVMe SSDs have driven Optane out of the client segment. Intel in its Q2-2022 Financial Results release, announced that it has initiated the winding down of the Optane Memory business, and that the company is incurring a $559 million "Optane Memory Impairment" charge this quarter.

3D XPoint faces technological competition from the latest crop of 3D-stacked Flash memory, which is achieving over 200 layers of density; while the latest generation of PCI-Express Gen 5.0 controllers enable data-rates in excess of 10 GB/s, and certain enterprise-relevant features of PCIe Gen 5. In a statement released to AnandTech, Intel says: "We continue to rationalize our portfolio in support of our IDM 2.0 strategy. This includes evaluating divesting businesses that are either not sufficiently profitable or not core to our strategic objectives. After careful consideration, Intel plans to cease future product development within its Optane business. We are committed to supporting Optane customers through the transition."
Source: AnandTech
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73 Comments on Intel to Shut Down Optane Memory Business, Retire 3D XPoint Memory

#26
bug
TheLostSwedeTry hanging out in the comments sections on some other sites and you would've seen why I mentioned fanbois. There's a group of people that expected Optane to rule the storage product world from servers to portable storage. When Micron threw in the towel, I knew it was over, but that was when the Intel fanbois shifted into overdrive.
You can find fanboys for pretty much everything, if you search hard enough. Still, I wouldn't extrapolate from that.
Every new storage technology in the past 50 years has been really expensive at first. So it wasn't entirely out there to expect XPoint to succeed, despite initial pricing. What was unwarranted, was not acknowledging that, being a new piece of tech, it still faced challenges. And challenges are not overcome simply by wishful thinking.
Of course, if the comments you mention were just regurgitating Intel's marketing, that's fanboyism 101.

Fwiw, I rooted for XPoint, wanted to try one, found it too expensive for me and did not assume it will automatically take over the world. I hope that doesn't make me a fanboy. If it does, I was a fanboy of the tech, not of Intel ;)
Posted on Reply
#27
Chrispy_
Too expensive/niche even for enterprise?
Shame.

In saying that, I get 6-figure budgets for VDI infrastructure which is hella latency and IOPS sensitive, and even I could never justify the cost of Optane...
Posted on Reply
#28
bug
ZoneDymoSigh, capitalism at its finest.
I'm pretty sure you were being sarcastic, but that is actually one of capitalism's strengths: it will not pour resources where there's no RoI.

Having lived under the Iron Curtain, I have witnessed first hard economies being ruined because of resources spent with no regard to returns.
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#29
dj-electric
Using Optane drives as OS drives since they came out (900p then, 905p as of today)

My quick takes:
- Not so much a home user kind of experience, most home users don't do heavy databases
- Performance was bound to be caught up by domestic type drives for most applications, and they did, I think even before gen4 drives became mainstream.
- The extreme endurance of the drive is commendable, but it isn't like you're going to outlast a 1200TBW drive in terms of market relevancy
- The use of U.2 for a consumer grade drive was a mistake. It was needed for the form factor, but created quite an undesirable setup with the M.2 U.2 adapter. Using mine on a PCIe X16 adapter card.

It was a decent run, but if Optane and 3DXPoint drains Intel's money, its better gone than existing.
Posted on Reply
#30
Wirko
bugI believe they hot some technological barriers they couldn't clear.
TheLostSwedeThe obvious issue was scaling. They simply couldn't get it to a point where enough data could be stored at a sensible price per megabyte. Whatever the reason behind this, we're not likely to ever really know.
One of the problems apparently was that they didn't find a way to build layers upon layers upon layers of those green and yellow blocks. So the price per GB remained close to that of dynamic RAM, which also cannot be built in layers with existing technology.
Posted on Reply
#31
R0H1T
They should've tried to license it to Sammy, SK Hynix, Toshiba among others! It was clear they had no intentions to grow that market, just wanted to rake in the dough. It's a shame because Optane could've lasted decades & maybe even eventually replaced NAND?
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#32
TheLostSwede
News Editor
bugYou can find fanboys for pretty much everything, if you search hard enough. Still, I wouldn't extrapolate from that.
Every new storage technology in the past 50 years has been really expensive at first. So it wasn't entirely out there to expect XPoint to succeed, despite initial pricing. What was unwarranted, was not acknowledging that, being a new piece of tech, it still faced challenges. And challenges are not overcome simply by wishful thinking.
Of course, if the comments you mention were just regurgitating Intel's marketing, that's fanboyism 101.

Fwiw, I rooted for XPoint, wanted to try one, found it too expensive for me and did not assume it will automatically take over the world. I hope that doesn't make me a fanboy. If it does, I was a fanboy of the tech, not of Intel ;)
I think a lot if it's had hopes for the technology, but Intel locked out everyone else and made weird products with it.

And no, these people were on an entirely different level. They expected Optane to be the next big thing for Intel that would make Intel kill AMD.
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#33
bug
TheLostSwedeAnd no, these people were in an entirely different level. They expected Optane to be the next big thing for Intel that would make Intel kill AMD.
LOL
R0H1TThey should've tried to license it to Sammy, SK Hynix, Toshiba among others! It was clear they had no intentions to grow that market, just wanted to rake in the dough. It's a shame because Optane could've lasted decades & maybe even eventually replaced NAND?
That's an interesting aspect. Licensing per se would have probably been a no-go with such an unfinished product. But collaboration at some level would have certainly been possible. Intel chose to keep the whole pie to themselves instead.

But now I have to ask: what if, based on what is known about the tech (both from Intel and Micron), someone at Samsung, SK Hynix or Toshiba actually manages to build something viable in 5-10 years?
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#34
ZoneDymo
bugI'm pretty sure you were being sarcastic, but that is actually one of capitalism's strengths: it will not pour resources where there's no RoI.

Having lived under the Iron Curtain, I have witnessed first hard economies being ruined because of resources spent with no regard to returns.
I am actually not being sarcastic, I think HUGE companies like Intel and Google should continue on good efforts and development evne if there is no massive profit to be had, its capatalism and publicly traded companies that forces the constant push for MORE profit, not just profit, MORE PROFIT which means cool tech like this (or in google's case Google Fiber and Stadia to name a few) just get axed off as they dont fit that course of action.

But these companies can EASILY carry it with all the profit they make elsewhere and provide the world with useful tech.

But no, its all endgame profit driven which imo is beyond sad, its damaging.
Posted on Reply
#35
ExcuseMeWtf
ZoneDymoI am actually not being sarcastic, I think HUGE companies like Intel and Google should continue on good efforts and development evne if there is no massive profit to be had, its capatalism and publicly traded companies that forces the constant push for MORE profit, not just profit, MORE PROFIT which means cool tech like this (or in google's case Google Fiber and Stadia to name a few) just get axed off as they dont fit that course of action.

But these companies can EASILY carry it with all the profit they make elsewhere and provide the world with useful tech.

But no, its all endgame profit driven which imo is beyond sad, its damaging.
You are not considering opportunity cost.

Resources they'd spend pouring into expensive technologies without ROI can be spent on technologies that DO have ROI. That means more funds for creating jobs and further R&D.
Posted on Reply
#36
bug
ZoneDymoI am actually not being sarcastic, I think HUGE companies like Intel and Google should continue on good efforts and development evne if there is no massive profit to be had, its capatalism and publicly traded companies that forces the constant push for MORE profit, not just profit, MORE PROFIT which means cool tech like this (or in google's case Google Fiber and Stadia to name a few) just get axed off as they dont fit that course of action.

But these companies can EASILY carry it with all the profit they make elsewhere and provide the world with useful tech.

But no, its all endgame profit driven which imo is beyond sad, its damaging.
Well, if you put it that way... I'm sure they would agree to spend their money as you want, as soon as you agree to spend your money they way they want. :rolleyes:
Posted on Reply
#37
R0H1T
ZoneDymoBut these companies can EASILY carry it with all the profit they make elsewhere and provide the world with useful tech.

But no, its all endgame profit driven which imo is beyond sad, its damaging.
Yes I'd rather not choose between unchecked capitalism & the worst of "Socialism" but we do live in a world where we don't really have a choice ~ being greedy is a choice though, like these corporate thugs have proven over & over again!
Posted on Reply
#38
randomUser
TheLostSwedeYet so many fanbois investing in it, because Intel.
It's obviously superior in terms of IOPS compared to current NAND based flash, but at 3-4x the cost, it's just not going to sell.
Personally I believe Intel messed up by pushing it for caching as well, no-one really asked for that.
Not only cost, but
P900 series, idle power 6W, active power 16,4W. Thank you - no.
Posted on Reply
#39
bug
R0H1TYes I'd rather not choose between unchecked capitalism & the worst of "Socialism" but we do live in a world where we don't really have a choice ~ being greedy is a choice though, like these corporate thugs have proven over & over again!
Being greedy today is what allows you to stay in the business and be greedy tomorrow.

Greed is a natural, powerful motivator. It's less costly to work with it, than it is to work against it. Greed is also relative (e.g. someone from a 3rd world country would easily find a number of things you are being greedy about).
Posted on Reply
#40
phanbuey
R0H1TWell looking at their financials I won't be surprised if they have to spin off their fabs as well, that chips subsidy can't come soon enough!
Yes that 15 Billion dollars they made last quarter is really concerning. They will really need to spin off those fabs...
Posted on Reply
#41
bug
phanbueyYes that 15 Billion dollars they made last quarter is really concerning. They will really need to spin off those fabs...
Remembers me of when I was making $15bn a year... Oh wait, it doesn't :nutkick:
Posted on Reply
#42
JAB Creations
R0H1TWell looking at their financials I won't be surprised if they have to spin off their fabs as well, that chips subsidy can't come soon enough!
Because Intel's $43 billion in profits in 2021 is forcing their CEO to sleep on a dirty mattress in a dark alley.

Where were you able to get such potent drugs?
Posted on Reply
#43
Denver
This was one of the few intel products I had any interest in. Sad end...
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#44
P4-630
:cry:

Too bad it was never meant for the average consumer, especially pricewise.
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#45
Telstar
I have windows installed on my 260GB Optane SSD, and that's the best part of my current rig.
It will be missed.
P4-630:cry:

Too bad it was never meant for the average consumer, especially pricewise.
"Consumers" have spent way more for less useful things, especially in the last 2 years.
Posted on Reply
#46
R0H1T
phanbueyYes that 15 Billion dollars they made last quarter is really concerning. They will really need to spin off those fabs...
I guess you should tell that to the CEO then & the ones who released this quarter's earing, or projected a $10(?) billion drop over the entire year than previous estimates?
JAB CreationsBecause Intel's $43 billion in profits in 2021 is forcing their CEO to sleep on a dirty mattress in a dark alley.
So you think a 20% drop in margins is normal, even for Chipzilla :rolleyes:

And the net loss?

And this isn't just an Intel vs AMD battle anymore, it's ARM & its licensees who are hitting them the hardest! Starting with Apple & now Amazon ~
www.phoronix.com/review/graviton3-amd-intel
A lot of posters here are simply ignoring how bad Intel has been over the last decade or so!
bugsomeone from a 3rd world country would easily find a number of things you are being greedy about
More third world than India? Or maybe you're referring some of the Sub Saharan African nations or Latin America?
bugBeing greedy today is what allows you to stay in the business and be greedy tomorrow.
Being (always) greedy is also why the planet is turning into a $hit hole now!
Greedy is fine as long as you don't put the rest of us in a ditch!

But let's just pretend that corporate greed isn't as bad as "Socialism" :rolleyes:

I have said this in the past that I don't like to compare (scale of) tragedies but you're making it look like one is much worse than the other, IMO they're both really bad!
en.wikipedia.org/wiki/Bhopal_disaster
Posted on Reply
#47
samum
I follow a lot of tech news, and I could never figure out what Optane was supposed to do, I just knew it was stupid expensive.
Posted on Reply
#48
phanbuey
R0H1TBut let's just pretend that corporate greed isn't as bad as "Socialism" :rolleyes:
It's exactly the same greed just owned by government and hidden (and called corruption) instead of companies. That's why all the govt officials in socialist countries live like nobility while everyone else suffers.
Posted on Reply
#49
MarsM4N
Way too expensive, minor real world benefits. :shadedshu: Guess not even the money throwing companies where interested in their tech.

Well, and there is this:

"Since the summer of 2021, Intel has also been missing a manufacturer for the 3D Xpoint memory chips: At that time, the former development and manufacturing partner Micron sold its semiconductor plant in the US state of Utah to the automotive chip manufacturer Texas Instruments (TI) , which then installed the only compatible production lines surrounded. According to the information from Blocks & Files, Intel recently served the low demand for Optane products exclusively from existing inventories, which corresponds to the depreciation amount of 559 million US dollars." Source: Heise.de
Posted on Reply
#50
Chrispy_
samumI follow a lot of tech news, and I could never figure out what Optane was supposed to do, I just knew it was stupid expensive.
It was supposed to bridge the performance gap between SSD and RAM.

The problem with that is that you also need your application to be designed around this SSD-RAM hybrid layer to see real benefit, otherwise it's just like running a faster SSD; SSD's are already fast enough that they're no longer the bottleneck in load times and application performance. And here's the real kicker; If you're re-writing your application to run on this hybrid layer, it's a very costly process that requires both time and money that would be better spent just throwing more RAM in the systems in the first place.
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