Intel and OpenAI: Missed Opportunities and the Relationship with Artificial Intelligence

Intel and OpenAI: Missed Opportunities

Intel has long stood out as a technology giant that forms the foundation of a large portion of computers worldwide. The processors produced by the company are found in a wide range of devices, from personal computers to corporate servers, from large data centers to various devices. Additionally, it is notable for its leadership in chip manufacturing processes.

However, Intel faced issues around 2015-2016 due to delays in the transition from 14nm to 10nm. This transition was expected to provide significant technological advancement, but the delays allowed competitors TSMC and Samsung to catch up to and even surpass Intel. Notably, a significant delay in the 7nm process in 2020 severely shook Intel’s technology leadership, leading to the loss of valuable customers like Apple, which began developing chips based on the ARM architecture.

Now, according to a report published by Reuters, OpenAI had made a 15% equity offer to Intel during the 2017-2018 period. At that time, OpenAI was a non-profit research organization working in the field of artificial intelligence. Intel and OpenAI had discussed various investment opportunities that included Intel acquiring a 15% stake for $1 billion in cash and options for additional 15% equity in case it produced server hardware at cost.

However, Intel CEO Bob Swan rejected this deal due to his belief that generative artificial intelligence models would not succeed in the near future. According to Reuters, OpenAI sought this partnership to reduce its dependence on NVIDIA GPUs and to build its own infrastructure for AI research. Another reason for the failure of the deal was Intel’s reluctance to produce chips for OpenAI’s data center unit.

The failed agreement between Intel and OpenAI serves as a significant reminder of missed opportunities and rapid changes in the technology industry. The rapid growth of generative AI led by OpenAI transformed the demand for GPUs, resulting in unprecedented growth for NVIDIA. If Intel had accepted this deal and invested in OpenAI, the future of both companies could have taken a very different direction.