Intel's new Xeon chip has 24 cores and sells for $8,898

From InfoWorld: No Intel chip has ever been as expensive as the new Xeon E7-8894 v4 server processor.

The $8,898 Xeon chip has massive horsepower with 24 cores, 60MB of cache and a maximum clock frequency of 3.4GHz. Intel said this is the company's fastest server chip, breaking enterprise application speed records.

The company's next expensive chip after the E7-8894 v4 is its other 24-core processor, the Xeon E7-8890 v4, which is priced at $7,174. The chips have similar features except for the base clock speed. The new chip starts at 2.4GHz compared to 2.2GHz for the less expensive chip.

The $8,898 chip even outprices Intel's fastest supercomputing chip, the Xeon Phi 7290F, which is priced at $6,401. It is also over four times more expensive than the costliest PC chip, the $1,723 Core i7-6950X for gaming desktops.

Some price competition could come from AMD, which is reentering the server market with Zen-based chips in the second quarter. Its initial server chips code-named Naples have up to 32 cores. AMD has not revealed the target market for Naples, but it could be cloud providers.

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