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About seven years ago, Intel had the chance to invest in OpenAI, a promising company in generative AI. In 2017 and 2018, Intel explored investing options, including a 15% stake for $1 billion or supplying hardware at cost. However, then-CEO Bob Swan blocked the investment, doubting AI models' near-term market impact.

This decision seems ironic given OpenAI's success, especially with ChatGPT's 2022 release. Had Intel partnered with OpenAI, it might not have relied so heavily on competitors like Nvidia, now a leader in AI hardware with its GPUs. In contrast, Intel has struggled to make a significant mark in AI.

Intel's latest earnings report shows a decline in revenue and operating income for its Data Center and AI Group (DCAI). Despite these issues, Intel is moving forward with new AI products. The Xeon 6 ‘Sierra Forest’ processor and the Xeon 6 ‘Granite Rapids’ CPU are in the pipeline, and the Gaudi 3 AI accelerators are expected to be widely deployed later this year.

Intel has made strategic acquisitions like Nervana Systems in 2016 and Habana Labs in 2019 to strengthen its AI capabilities. However, these efforts have yet to rival Nvidia. Current CEO Pat Gelsinger remains optimistic, highlighting Intel's lineup of AI chips, including the upcoming third-generation Gaudi AI chip and the Falcon Shores AI chip slated for late 2025. Gelsinger emphasizes expanding customer adoption and a robust pipeline to grow Intel’s AI market share.

Bob Swan's operational focus might have led to Intel missing out on OpenAI. Swan, CEO from 2018 to 2021, contrasted with his predecessor Brian Krzanich, who pursued strategic acquisitions to boost Intel’s AI prowess. Despite setbacks, Intel continues to push forward in the AI arena, aiming to enhance its market position.

Editor：Lulu

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