- Intel’s CEO has allegedly addressed employees all over the world
- Lip-Bu Tan apparently put some very honest observations and clear goals
- All this indicates a focus on streamlining and also breaking into the AI arena – though not to catch nvidia directly but with so -called edge ai
Intel’s (relatively) new CEO has apparently admitted the seriousness of the matches that the company is facing, but it seems that Lip -Bu Tan has a recovery plan – and a realistic sounds on it.
Oregonian reported a recording of a Q&A session with Tan (stained by Toms Hardware), which was apparently sent to Intel staff around the world, and some very interesting comments were made by CEO.
Take all these quotes with some caution, but we are told that Tan observed: “20, 30 years ago we are really the leader. Now I think the world has changed. We are not in the top 10 semiconductors.”
It is an honest recording, and one of many made here. Tan said that the redundancies currently underway at Intel are marking the start of a ‘marathon’ effort to make the company more fast and smooth, as rivals like AMD and Nvidia – and that Intel should be ‘humble’ now.
The CEO also admitted that “there is a lot of work to do” in terms of recovering from losing the market share of Data Center (TURF, where AMD’s EPYC chips have made serious progress).
A hard time for Intel
Of course, Intel has been subjected to several problems in the latest history, and they thorniest of these (in terms of consumers) are the various seizures of misfire about Team Blue’s newer desktop processors. It includes instability swings with previous gene CPUs and a disappointing performance from the current Gen-Arrow Lake chips in terms of their game skill, all of which have very spotted Intel’s reputation among PC buyers and enthusiasts out there.
Tan noted that Intel’s PC business “is doing a little better”, but that it had to strengthen its architecture in terms of meeting the requirements for ‘advanced computing’ and a key area is AI.
In AI’s sphere, Tan was again honest with regard to Intel lacked the boat and said that: “On [AI] Training I think it’s too late for us, “Since Nvidia is just” too strong “in this market at this time, which is clearly the case.
Tan, however, imagines an input for Intel with regard to Kant AI, which means bringing AI directly on devices (as opposed to accessing it online via the cloud). CEO excites: “It is an area that I think is coming up is coming up very big and we want to make sure we catch.”
Another great opportunity for Intel that goes past Tan’s PlayBook-in-the-writing is Agentic AI, just as chatbots that can autonomously handle tasks-in to some extent. Down on the line, we look at proactive AI that intervenes with set goals (rather than just reactive bots).
To move forward with Intel’s AI ambitions, we get some great hires, including three new vice presidents brought on board to better utilize the AI arena.
Analysis: a defined vision (in theory) – and a brutal kind of clarity
Tan is not under any illusions about the task that is ahead, and his words are chosen to reflect it (again with the warning that we must be appropriate skeptical about these quotes). This becomes a marathon and Intel’s turn will not happen quickly – and the path to improvement is a rather brutal.
Oregonian (Oregonlive) had previously reported plans to dismiss 529 Intel staff in Oregon, which is allegedly happening next week, and other job losses in California, Arizona and Israel, which we have all heard recently (and none of them have been confirmed). Manufacturing tasks are reduced by up to 20%, marketing is closed and outsourced and the car department is closed.
Okay, so all this remains rumored, but there is a feeling of a clearer direction and more of a sense of realism here compared to the Pat Gelsinger era (the previous CEO of Intel). A focus on streamlining is as noted a difficult choice to make, but focusing is clearly necessary to some extent. There are no secret Intel’s in trouble, especially since its latest architecture, the 18A process, was joked to be wing, with Team Blue Switching to promote the successor, 14A, at least for external customers.
AI is obviously a high-value goal to exploit as well, and Tan’s plans again sound realistic-not trying to catch Nvidia, but to get Intel out of his own territory with regard to AI on device. In fact, there is already a rumor that with its next generation of desktop processors, which in theory is Arrow Lake update arriving later in the year, Intel focuses on implementing a very beef NPU (chip to speed up AI tasks on the device). It could allow for Copilot+ features on a stationary PC for the first time ever, which I recently discussed elsewhere more in -depth.
Some of the pieces in this puzzle may already be moving in place. It will be interesting to see what signals – and words – Tan uses in future official statements and earnings calls, and in fact about this humble and more realistic mindset that is raised here.
