Highlights
- Intel misses early opportunity to acquire stake in OpenAI, presenting as a setback for the firm.
- Rivals Nvidia and AMD, tapping into AI, make comparatively better advancements.
- Intel’s recent efforts gauge in on AI, with the firm levelling up gradually.
The technology giant Intel has encountered a significant setback recently, falling behind rivals Nvidia and Advanced Micro Devices (AMD). The tech firm’s initial decision to ignore tapping into generative AI has presented it with a stockpile of setbacks in today’s AI-driven era. Reportedly, Intel constantly declined opportunities to hold a significant stake in OpenAI, a pioneer in generative artificial intelligence industry. This chronicle appears to have presented the firm with a major setback, as seen with its stock price constantly declining in the interim.
Intel Misses OpenAI Deal
According to an X post by ‘Walter Bloomberg’ today, Intel had been in talks with OpenAI for up to a significant 30% stake in the AI firm. However, according sources referred to by Reuters, no such deal happened, with the tech firm missing the opportunity.
Intriguingly, the investment talks started around seven years ago when OpenAI was budding. However, the then-CEO Bob Swan did not believe in generative AI’s potential, negating the deal.
Over the years, the tech-giant had several opportunities to invest in the Sam Altman-backed AI firm, including opportunities like a 15% stake for $1 billion in cash and an additional 15% stake if the tech firm offered hardware to the AI startup at a cost price. Nonetheless, no such deal happened.
Meanwhile, the company’s rivals, such as Nvidia and AMD, former gaming graphics processing units, sacked the opportunity to venture into AI development. Subsequently, Nvidia and AMD stocks rose considerably before being pulled down by the recent market crash, aka ‘Black Monday.’
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Nvidia (NVDA) & AMD Take Lead?
Notably, Nvidia (NVDA) has recently emerged as a leader in AI chip production, capitalizing on the market. The AI chip manufacturer even went on par with Apple (AAPL) in market valuation, with the current value at $2.65 trillion.
NVDA stock price saw over 50% gains in the past six months, in tandem with the constant growth of AI. However, AMD’s stock price saw a roughly 20% decline over the same period. Nonetheless, INTC stock price witnessed an approximate 50% dip in value over the past six months. This plummeting value might be attributed to the firm’s late entry into the artificial intelligence sector.
However, recent efforts show a paradigm shift in focus towards AI. Intel recently revealed Panther Lake, an AI PC processor. Meanwhile, amid the ongoing Olympics buzz, the tech firm also revealed an AI platform for spectators to test their own strength and agility, further grasping a hold in the sector.
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