Intel wanted to take over Nvidia for $20 billion in 2005 – today it is worth more than $3 trillion

In 2005, the then head of Intel, Paul Otellini, approached the company’s board of directors with an unexpected proposal – to absorb Nvidia for $20 billion. The New York Times recently learned about this. Today, Nvidia is worth more than $3 trillion, while Intel is worth less than $100 billion.

Image source: Rubaitul Azad / unsplash.com

Some members of Intel management admitted that Nvidia’s developments could play an important role in data centers in the future, and with the current boom in artificial intelligence technologies this is a fait accompli, but the board of directors opposed the idea of ​​​​a green takeover. It would be Intel’s most expensive acquisition yet, and the company had concerns about integrating the new acquisition.

Instead, Intel’s board of directors supported the project of its own Larabee graphics architecture, led by Pat Gelsinger, the company’s current CEO. The architecture used Intel x86 technologies, that is, the graphics processor had the features of a central one. As a result, Intel closed the project, although later it returned to the graphics direction with the Xe and Arc projects that are relevant today. In the field of AI, Intel still made several acquisitions: in 2016, these were Nervana Systems and Movidius, and in 2019, Habana Labs. But none of them compare to where Nvidia finds itself today with its $3 trillion capitalization. Today, Intel Gaudi 3 is positioned as an inexpensive alternative to its accelerators, but there is an opinion that the company has missed its chance in the field of AI. In the mass market, Intel’s lot remains NPU components for its own central processors.

The company had another chance to get into the AI ​​space early—in 2017 and 2018, it could have bought a stake in OpenAI when it was a small nonprofit startup. But then-CEO Bob Swan rejected the deal, saying the AI ​​models would be a long time coming to the general market.

admin

Share
Published by
admin

Recent Posts

A demo of Dispatch, a comedy game about a superhero agency from the former developers of Tales from the Borderlands and The Wolf Among Us, has been released on Steam

Developers from the American AdHoc Studio, founded by former Telltale Games, Ubisoft and Night School…

5 hours ago

Digma DP-FHD800A LCD Full HD Projector Review: A Modern Approach

When you think about a home theater, you immediately imagine bulky projectors with a bunch…

5 hours ago

Lian Li Introduces HydroShift II LCD-C Liquid Cooling System with 360mm Radiator and Three Configurations

Lian Li has introduced a series of maintenance-free liquid cooling systems HydroShift II LCD-C. It…

5 hours ago

Apple: App Store App Developers to Earn $406 Billion in 2024

Amid mounting pressure from U.S. regulators, Apple has released the results of an independent study…

5 hours ago

ASRock Admits Its Motherboards Break Ryzen 9000 Processors

Following a report from YouTube channel Tech Yes City that ASRock linked Ryzen 9000 processor…

5 hours ago

Apple to Change OS Numbering: iOS 26 to Come This Year Instead of iOS 19

Apple is preparing a large-scale rebranding of its line of operating systems. This was reported…

1 day ago