Intel’s Missed Opportunity: Declining a Stake in OpenAI

Approximately seven years ago, Intel engaged in discussions with OpenAI regarding the acquisition of a 30% stake in the AI startup. This was reported by Reuters, citing sources.

The agency discovered that over several months in 2017 and 2018, company executives explored various options, including purchasing 15% of shares for $1 billion. There was also consideration of acquiring an additional 15% stake on the condition that Intel would produce hardware for Sam Altman’s startup at cost price.

Ultimately, the chip manufacturer declined the deal because the then-CEO Bob Swan believed that generative artificial intelligence models would not reach the market in the near future. Additionally, Intel was reluctant to sell products at cost, the media noted.

Reuters highlighted that OpenAI was interested in the investment as it could reduce the company’s reliance on Nvidia chips and allow it to build its own infrastructure.

In early August 2024, Intel announced the layoff of 15% of its workforce, or about 15,000 employees, amid lagging in the AI race.

In April, the firm unveiled the next-generation AI chip Gaudi 3.

Back in the summer of 2023, Intel CEO Pat Gelsinger announced plans to integrate artificial intelligence into every product of the firm.