Intel's interim co-CEO, Michelle Johnston Holthaus, acknowledged that its Gaudi 3 AI accelerator is falling short of sales targets due to software challenges, leading the company to focus on the next-gen Falcon Shores GPU platform. Holthaus emphasized that Falcon Shores will require rapid iterations to achieve competitiveness, as it is seen as a learning step rather than a breakthrough. The platform aims to integrate advanced architectures for improved performance but is not expected to revolutionize the market immediately.