Intel Corp's (INTC  ) latest foray into the software realm is proving successful. According to Chief Technology Officer Greg Lavender, the company aims to achieve cumulative software revenue of $1 billion by the end of 2027.

Intel generated over $100 million in software revenue in 2021, the year CEO Pat Gelsinger recruited Lavender from VMware to lead the chipmaker's software initiatives. Since then, Intel has acquired three software firms.

Lavender expressed his goal of reaching $1 billion in software and developer cloud subscription revenue, potentially achieving this target before the end of 2027, Reuters reported.

Intel's overall revenue was $54 billion in 2023. It offers a diverse range of software services, including cloud computing and artificial intelligence.

The company's strategic focus encompasses AI, performance, and security, with notable investments in these domains.

Lavender highlighted a growing demand for Intel's upcoming Gaudi 3 chip, which could help the company secure a significant position in the AI chip market.

Currently, Intel and Advanced Micro Devices Inc (AMD  ) have made limited progress in challenging Nvidia Corp (NVDA  ), which holds an 83% share of the data center chip market in 2023.

Intel is supporting open-source projects aimed at developing software for various AI chips, and it is anticipating further advancements soon.

Nvidia's dominance is partly due to its CUDA software, which binds developers to its chips.

However, France's antitrust regulator is investigating Nvidia for possible anti-competitive behavior, particularly concerning the reliance on CUDA within the generative AI sector.

Intel is a member of the UXL Foundation, a consortium of tech companies, including Qualcomm Inc (QCOM  ) and Samsung Electronics Co Ltd (SSNLF  ), working on an open-source project to enable software compatibility across different hardware.

Intel also contributes to Triton, an initiative led by OpenAI to create an open-source programming language aimed at optimizing AI chip code efficiency. AMD and Meta Platforms Inc (META  ) are among the project's supporters.

Triton is already operational on Intel's current GPUs and will be compatible with the next generation of AI chips. Lavender believes Triton will "level the playing field" in the AI chip market.

Intel stock has lost 1% in the last 12 months. Investors can gain access to the stock via First Trust Nasdaq Semiconductor ETF (FTXL  ) and Strive U.S. Semiconductor ETF (SHOC  ).

Price Action: INTC shares are trading lower by 0.21% at $33.43 in the premarket session at the last check on Friday.