Overview

• In a leaked Q&A, Lip-Bu Tan acknowledged that Intel has fallen out of the world’s top-ten semiconductor firms and admitted it is too late to catch up with Nvidia in AI training hardware.
• Intel’s market capitalization has plunged from $211 billion at the end of 2023 to just over $100 billion, while Nvidia this week became the first company to surpass a $4 trillion valuation.
• Since taking the helm in March, Tan has overseen thousands of global layoffs, including the elimination of 529 jobs in Oregon, as part of aggressive cost-cutting measures.
• About 30% of Intel’s chip fabrication has been outsourced to TSMC, with GPU tiles for Meteor Lake and Lunar Lake designs already produced externally.
• Intel is internally validating its 18A manufacturing process for its own products before deciding on external offerings, and pivoting its technology roadmap toward embedding AI at the device edge.