Intel was once the technology leader, powering most of the computing that happened around the world. Its CPUs powered PCs, enterprise servers, large data centers, and more. Additionally, it held the process leadership in chip manufacturing.
Intel's struggles began around 2015-2016 when it faced delays in transitioning from its 14nm node to 10nm, which was supposed to be a major advancement. This delay allowed competitors like TSMC and Samsung to catch up and even surpass Intel in process technology. Following that major setback, Intel announced a significant delay in its 7nm process in 2020, pushing it back by nearly 2-3 years. Due to these delays, Intel lost valuable customers like Apple, which started developing its own chips based on ARM architecture.
Today, Reuters reported that OpenAI, one of the most valuable startups in the world, offered Intel a 15% stake in 2017-2018. During that time, OpenAI was a non-profit research organization working on AI. Intel and OpenAI discussed various investment options, including Intel buying a 15% stake for $1 billion in cash and an additional 15% stake if it made server hardware at cost for OpenAI.
Then Intel CEO Bob Swan rejected the deal because he believed that generative AI models would not become successful in the near future. Therefore, Intel would not be able to recoup its investment. According to a Reuters report, OpenAI was interested in this deal to reduce its reliance on NVIDIA GPUs and build its own infrastructure for AI research. Another reason the deal did not go through was that Intel's data center unit was reluctant to make chips at the cost of OpenAI.
This story of Intel and OpenAI serves as a stark reminder of the missed opportunities and shifting tides in the tech industry. The exponential growth of generative AI, spearheaded by OpenAI, has dramatically transformed the demand for GPUs, catapulting NVIDIA to unprecedented heights. Had Intel seized the chance to invest in OpenAI, the trajectories of both companies might have been vastly different. This story highlights the need for big companies to stay adaptable, think ahead, and be open to new technologies, even if their future impact isn't clear right away.
Source: Reuters
6 Comments - Add comment