The Intel graphic chip unit is divided into two.

Intel Corp. INTC announced on Wednesday that it is dividing its graphic chips division into two in order to better compete with Nvidia Corp. NVDA and Advanced Micro Devices AMD.

According to the company, accelerated computing teams will join Intel's data centre and artificial intelligence (AI) businesses, while the consumer graphics unit will be united with the client computing department, which develops processors for personal PCs.

The decision was made as Intel increased its focus on accelerated computing, a booming market that is dominated by Nvidia as the use of AI grows.

According to Wedbush Securities analyst Matthew Bryson, "I don't think it changes much (if anything) other than aligning the products with the respective sales teams they fit with instead of having them as a standalone section."

Raja Koduri, who oversaw the division that handled graphic chips, will take over as the company's chief architect and direct its long-term approach to technology and chip design.

Koduri, who oversaw graphics technology initiatives at both AMD and iPhone manufacturer Apple AAPL, joined Intel in 2017.