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Intel is moving into GPUs and has hired a chief architect, CEO Lip-Bu Tan says

Daniel Nenni

Daniel Nenni

Admin
Staff member
Lip-Bu Tan CNBC.jpg


Key Points
- Intel CEO Lip-Bu Tan said the company has appointed a new chief architect to build GPUs.
- The chipmaker’s foundry business is still lacking an anchor customer.
- Intel has received recent backing from the U.S. government, SoftBank and Nvidia.

Intel CEO Lip-Bu Tan said Tuesday that the chipmaker has appointed a new chief architect to build out graphics processing units, or GPUs.

The chips, made by the likes of Nvidia and Advanced Micro Devices, power large language models and have skyrocketed in demand as companies race to build out artificial intelligence infrastructure and data centers.

Tan told the audience at the Cisco AI Summit that it took “some persuasion” to convince the new executive to join the chipmaker. Tan did not name the new hire.

Intel’s stock has rallied over the last year as investors gain optimism about the company’s foundry business, but the company is primarily making chips for itself.

Over the past few years, the embattled American chipmaker has fallen behind major semiconductor players that have seen a boost from the AI data center buildout.

Earlier this month, production snags and supply troubles overshadowed the chipmaker’s better-than-expected quarterly results. Investors had also been hoping for more clarity on an anchor customer for its foundry segment.

Last year, the company received a wave of big investments from the U.S. government, SoftBank and Nvidia.

Tan also discussed the memory chip shortage rattling the technology sector.

Rising AI data center demand has created a supply and demand imbalance that’s allowed memory chip companies to continue hiking prices.

He called AI the “biggest challenge” for memory and said he expects “no relief until 2028.”

www.cnbc.com

Intel is moving into GPUs and has hired a chief architect, CEO Lip-Bu Tan says

Nvidia and AMD are leaders in the GPUs, which power large language models and have skyrocketed in demand with the data center buildout.
www.cnbc.com www.cnbc.com
 
Huge relief to hear this strategic commitment. Without parallel accelerators Intel products will fail. Can they pull it off?
 

Intel CEO says company will make GPUs, popularized by Nvidia​

SAN FRANCISCO, Feb 3 (Reuters) - Intel CEO Lip-Bu Tan on Tuesday said the company plans to build graphics processing units (GPUs), the category of chip popularized by Nvidia.

"I just hired the chief GPU architect, and he's very good. ‌I'm very delighted he joined me," Tan said, claiming that it took some persuading

Qualcomm executive Eric Demmers last ‌month went to Intel, a move first reported by industry publication CRN and later confirmed by Demmers on LinkedIn.

In an interview with Reuters on the sidelines of the Cisco AI Summit, Tan said the GPU effort will target data centers, where Nvidia has built a massive business ⁠in recent years, and that ‌Demmers will report to Intel's data center chip chief Kevork Kechichian.

"It's tied in with the data center," Tan told Reuters. "We're working with customers, and ‍will then define what the customer needs."

Tan said from the stage that "a couple of customers are engaging heavily" with Intel's chip contract manufacturing operation, called Intel Foundry. In the interview with Reuters, he said that the interest was around Intel's 14A manufacturing technology and that volume manufacturing would ‌likely ramp up later this year.

"In order to have a customer ... they have to let us know what is the volume and which product, so that we can plan and take time to build the capacity," Tan told Reuters.

Tan also said that during a recent hiring drive for chip designers, he was "shocked" to find that Huawei Technologies Co had hired about 100 "top ⁠notch" designers, despite the fact that the U.S. has restricted its access to chip industry software and tools.

Tan said that when he asked Huawei designers why they had joined the Chinese firm when it does not have access to U.S. tools, "they said, 'Even ‍though we don't have ⁠access to the best tools, like (electronic design automation) tools from Cadence and Synopsys, we have the poor man way to do it, and we can do it,'" Tan ⁠said.

"To me, they are just shortly behind us, and if you're not careful, they will just leap forward ‌ahead of us."

 
Daniel Nenni said:

Intel CEO says company will make GPUs, popularized by Nvidia​

SAN FRANCISCO, Feb 3 (Reuters) - Intel CEO Lip-Bu Tan on Tuesday said the company plans to build graphics processing units (GPUs), the category of chip popularized by Nvidia.

"I just hired the chief GPU architect, and he's very good. ‌I'm very delighted he joined me," Tan said, claiming that it took some persuading

Qualcomm executive Eric Demmers last ‌month went to Intel, a move first reported by industry publication CRN and later confirmed by Demmers on LinkedIn.

In an interview with Reuters on the sidelines of the Cisco AI Summit, Tan said the GPU effort will target data centers, where Nvidia has built a massive business ⁠in recent years, and that ‌Demmers will report to Intel's data center chip chief Kevork Kechichian.

"It's tied in with the data center," Tan told Reuters. "We're working with customers, and ‍will then define what the customer needs."

Tan said from the stage that "a couple of customers are engaging heavily" with Intel's chip contract manufacturing operation, called Intel Foundry. In the interview with Reuters, he said that the interest was around Intel's 14A manufacturing technology and that volume manufacturing would ‌likely ramp up later this year.

"In order to have a customer ... they have to let us know what is the volume and which product, so that we can plan and take time to build the capacity," Tan told Reuters.

Tan also said that during a recent hiring drive for chip designers, he was "shocked" to find that Huawei Technologies Co had hired about 100 "top ⁠notch" designers, despite the fact that the U.S. has restricted its access to chip industry software and tools.

Tan said that when he asked Huawei designers why they had joined the Chinese firm when it does not have access to U.S. tools, "they said, 'Even ‍though we don't have ⁠access to the best tools, like (electronic design automation) tools from Cadence and Synopsys, we have the poor man way to do it, and we can do it,'" Tan ⁠said.

"To me, they are just shortly behind us, and if you're not careful, they will just leap forward ‌ahead of us."

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