In 2017, Intel had the opportunity to acquire a stake in OpenAI, but did not take advantage of this chance. According to Reuters, the company’s former CEO Robert Swan did not believe artificial intelligence (AI) models would become popular anytime soon.
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However, according to informed sources, Swan allegedly abandoned the deal because he did not see the prospect of quickly reaching the mass market for AI models, which, in his opinion, would mean a lack of return on investment. Additionally, Intel’s data center division “didn’t want to produce at cost.” Swan made a mistake. In 2022, OpenAI managed to launch ChatGPT, which instantly attracted huge interest and received widespread recognition.
Interestingly, for OpenAI, collaborating with Intel would mean less dependence on Nvidia, which later became the market leader in AI computing accelerators. Instead of Intel, Microsoft jumped in and invested billions of dollars in OpenAI in 2019, 2021 and 2023, turning the company into the largest player in the AI market.
Intel has been experiencing financial difficulties lately. Data Centers and AI (DCAI) recently reported a decline in revenue and operating income. However, Xeon Sierra Forest processors have already entered mass production, and Xeon Granite Rapids processors will begin shipping soon. Intel also said that its Gaudi 3 AI accelerators will be launched in the second half of the year and that more than 20 customers are already ready to purchase them.
Recall that as CEO of Intel from 2018 to 2021, Robert Swan was often criticized for his lack of technical acumen. He previously served as the company’s CFO, focusing more on finance than technology.