Intel concedes defeat in AI race with Nvidia
The CEO criticised Intel’s slow decision-making and called for a more responsive, customer-focused approach.
Intel CEO Lip-Bu Tan has admitted the company can no longer compete with Nvidia in the AI training processor market. Speaking candidly to staff during a company-wide meeting, Tan said Nvidia’s lead is too great to overcome.
His comments mark a rare public admission of Intel’s slipping position in the global semiconductor industry.
The internal broadcast coincided with major job cuts across Intel’s global operations. Entire divisions are being downsized or shut down, including its automotive arm and parts of its manufacturing units.
Around 200 roles are being cut in Israel, along with hundreds more across other departments, as the company aims to simplify its structure and improve agility.
Tan noted that Intel has fallen out of the top 10 semiconductor firms by market value, a stark contrast to its former dominance. Once worth over $200 billion, Intel is now valued at around $100 billion.
Nvidia, meanwhile, briefly became the first company to surpass a $4 trillion valuation.
Despite the setbacks, Tan is steering Intel toward edge AI and agentic AI as areas of future growth. He stressed the need for cultural change within Intel, urging faster decision-making and a stronger focus on customer needs.
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