Intel (INTC) experienced a slight stock drop after OpenAI announced it wouldn’t be purchasing Intel chips, a twist of fate considering OpenAI’s 2017 investment pitch to Intel, which was rejected. While investors remained unfazed by the news, it highlighted OpenAI’s shift towards other chip partners and an apparent decline in Intel’s appeal. The recent departure of Intel’s AI leader, Sachin Katti, to OpenAI only adds to Intel’s challenges. Carnegie Mellon professor Tim Derdenger remarked that OpenAI is unlikely to return to a supplier with diminished performance, especially one that turned them away in the past. While there’s a slim chance for Intel to regain business, analysts believe it would necessitate significant improvements in chip performance. In response to the situation, Intel has appointed longtime semiconductor expert Craig Barratt to its board, hoping his experience will bolster the company’s standing in the competitive market.
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