How chip giant Intel missed out on partnering with OpenAI and fell behind the times

Intel, once a dominant force in the tech industry, has found itself playing catch-up in the rapidly evolving AI landscape due to several strategic missteps.

Spurning OpenAI

One of the most significant oversights was Intel's decision to pass on an investment in OpenAI in 2017-2018. At the time, OpenAI was a relatively unknown entity but possessed immense potential in the nascent field of generative AI. Intel's skepticism about the commercial viability of these models proved to be a costly error.

Acquisition and Abandonment of Nervana Systems

Intel's acquisition of Nervana Systems in 2016 was initially seen as a step in the right direction. Nervana specialized in AI chip development, and its technology showed promise. However, Intel's subsequent decision to abandon Nervana's efforts in favor of a different approach with Habana Labs further disrupted its AI strategy.

Focus on Traditional Chip Design

While Intel excelled in traditional chip design, it struggled to adapt to the unique computational demands of AI. This focus on legacy technology hindered its ability to compete with rivals like Nvidia, which had invested heavily in developing specialized AI accelerators.

The Rise of Nvidia

Nvidia's dominance in the AI chip market stands in stark contrast to Intel's challenges. By recognizing the potential of AI early on and investing heavily in GPU architecture suitable for AI workloads, Nvidia captured a significant share of the market.

Intel is now working hard to regain its footing in the AI race. The company has introduced its own AI chips, such as the Gaudi, but it faces an uphill battle to catch up with Nvidia's established ecosystem.

Source: Reuters