For U.S. chip giant Intel, the darling of the computer age before it fell on harder times in the AI era, things might have been quite different. About seven...
SAN FRANCISCO - For U.S. chip giant Intel, the darling of the computer age before it fell on harder times in the AI era, things might have been quite different. About seven years ago, the company had the chance to buy a stake in OpenAI, then a fledgling non-profit research organization working in a little-known field called generative artificial intelligence, four people with direct knowledge of those discussions told Reuters.
Over several months in 2017 and 2018, executives at the two companies discussed various options, including Intel buying a 15% stake for $1 billion in cash, three of the people said. They also discussed Intel taking an additional 15% stake in OpenAI if it made hardware for the startup at cost price, two people said.Intel ultimately decided against a deal, partly because then-CEO Bob Swan did not think generative AI models would make it to market in the near future and thus repay the chipmaker's investment, according to three of the sources, who all requested anonymity to discuss confidential matters. OpenAI was interested in an investment from Intel because it would have reduced their reliance on Nvidia's chips and allowed the startup to build its own infrastructure, two of the people said. The deal also fell through because Intel's data center unit did not want to make products at cost, the people added. An Intel spokesperson did not address questions about the potential deal. Swan did not respond to a request for comment and OpenAI declined to comment. Intel's decision not to invest in OpenAI, which went on to launch the groundbreaking ChatGPT in 2022 and is now reportedly valued at about $80 billion, has not previously been made public. It is among a series of strategic misfortunes that have seen the company, which was at the cutting edge of computer chips in the 1990s and 2000s, stumble in the era of AI, according to Reuters interviews with nine people familiar with the matter including former Intel executives and industry experts.Last week, Intel's second-quarter earnings triggered a stock price decline of more than a quarter of its value in its worst trading day since 1974. For the first time in 30 years, the tech company is worth less than $100 billion. The erstwhile market kingpin - whose marketing slogan "Intel Inside" long represented the gold standard of quality - is still struggling to get a blockbuster AI chip product to market. Intel is now dwarfed by $2.6 trillion rival Nvidia, which has pivoted from video game graphics to AI chips needed to build, train and operate large generative AI systems like OpenAI's GPT4 and Meta Platforms' Llama models. Intel has also fallen behind the $218 billion AMD. Asked about its AI progress, the Intel spokesperson referred to recent comments by CEO Pat Gelsinger, who said the company's third-generation Gaudi AI chip, which it aims to launch in the third quarter of this year, would outperform rivals. Gelsinger said the company had "20-plus" customers for the second and third generation of Gaudi and that its next-generation Falcon Shores AI chip would launch in late 2025. "We are nearing the completion of a historic pace of design and process technology innovation, and we are encouraged by the product pipeline we're building to capture a greater share of the AI market going forward," the spokesperson told Reuters.On the OpenAI front, Microsoft stepped in to make an investment in 2019, propelling itself to the forefront of the AI era triggered by the 2022 release of ChatGPT and a frenzy of activity among the largest companies in the world to deploy AI. Although in hindsight the prospective deal was a missed chance for Intel, the company has been gradually losing the battle for AI supremacy for more than decade, according to the former executives and industry experts interviewed. "Intel failed in AI because they didn't present a cohesive product strategy to their customers," said Dylan Patel, founder of semiconductor research group SemiAnalysis. For more than two decades, Intel believed the CPU, or central processing unit, like the ones that power desktop and laptop computers, could more effectively handle the processing tasks required to build and run AI models, according to four former Intel executives with direct knowledge of the company's plans. Intel engineers viewed the graphics processing unit video gaming chip architecture, used by rivals Nvidia and Advanced Micro Devices, as comparatively "ugly," one of the people said. By the mid 2000s, though, researchers had discovered that the gaming chips were far more efficient than CPUs at handling the intensive data crunching necessary to build and train large AI models. Because GPUs are designed for game graphics, they can perform an enormous number of calculations in parallel. Nvidia's engineers have spent years since then modifying the GPU architecture to tune them for AI uses, and built the software necessary to harness the capabilities. "When AI hit ... Intel just didn't have the right processor at the right time," said Lou Miscioscia, analyst at Japanese investment bank Daiwa.Since 2010, Intel has made at least four attempts to produce a viable AI chip, including acquiring two startups and at least two major homegrown efforts. None have made a dent against Nvidia or AMD in the rapidly expanding and lucrative market, according to three people with direct knowledge of the company's internal activities. Intel's entire data center business is expected to generate sales of $13.89 billion this year - which includes the company's AI chips but many other designs too - while analysts expect Nvidia to generate data center revenue of $105.9 billion. In 2016, Intel CEO Brian Krzanich sought to buy its way into the AI business by acquiring Nervana Systems for $408 million. Intel executives were attracted to Nervana's technology, which was similar to a tensor processing unit chip made by Google, according to two former executives. The TPU - specifically designed for building, or training, large generative AI models - stripped away a conventional GPU's features useful for video games and focused exclusively on optimizing AI calculations. Nervana enjoyed some success with customers including Meta Platforms for its processor, though not enough to prevent Intel from switching horses and abandoning the project. In 2019, Intel bought a second chip startup, Habana Labs, for $2 billion before it shut down Nervana's efforts in 2020.The interest rate for the most popular U.S. home loan plunged last week to its lowest level in 15 months, after the Federal Reserve signaled it could start cutting its policy rate in September, and a downshift in the job market bolstered financial market bets the cuts would be big. The average contract rate on a 30-year fixed-rate mortgage dropped 27 basis points in the week ended Aug. 2, to 6.55%, the Mortgage Bankers Association said on Wednesday.For U.S. chip giant Intel, the darling of the computer age before it fell on harder times in the AI era, things might have been quite different. About seven years ago, the company had the chance to buy a stake in OpenAI, then a fledgling non-profit research organization working in a little-known field called generative artificial intelligence, four people with direct knowledge of those discussions told Reuters. Over several months in 2017 and 2018, executives at the two companies discussed various options, including Intel buying a 15% stake for $1 billion in cash, three of the people said.Every fall there are significant teams in college football with uncertainty at quarterback. A look at the biggest competitions ahead of this season.Voting concludes Saturday in Hawaii’s state primaries, where candidates for Congress and the Legislature will compete for their parties’ nominations. Hawaii’s primaries for Senate and House should set the stage for much-needed safe wins for Democrats in November as the party faces tough contests across the country in its bid to control both chambers heading into the next presidential administration. At the top of the ballot is the Senate race, where Democrat Mazie Hirono seeks a third term.TORONTO, Aug. 07, 2024 -- Giyani Metals Corp. , developer of the K.Hill Battery-Grade Manganese Project in Botswana , is pleased to provide an update on construction of the Demonstration Plant . Highlights: Substantial progress has been made at the Demo Plant in July with the installation of five additional modular process skids . Seven of the nine Process Modules have noDublin, Aug. 07, 2024 -- The "Thematic Intelligence: Gas Flaring" report has been added to ResearchAndMarkets.com's offering.Gas flaring involves excess natural gas being burnt or flared off during an oil and gas operation. Due to growing concerns about emissions from this activity, there has been a steady decline in global flaring volumes. But despite a decline in global flaring volumes, there was no noticeable change in the volumes of the top five gas-flaring countries. The oiWhy are riots happening in the UK? Everything you need to know as more planned todayMONTREAL — Air Canada reported a second-quarter profit of $410 million, down from $838 million a year earlier, as its operating revenue edged higher.The review will be led by Dr David Levy, who is medical director for Lancashire and South Cumbria integrated care board.The plan, published on Wednesday, comes after data showed 5,769 under-18s were on the national waiting list for gender care as of the end of May.If you have an abundance of strawberries that are turning quicker than you can eat them, preserve the joy with this simple jam Broad City’s Ilana Glazer on her new pregnancy comedy: ‘I had no idea how effortful having children is’ After defining goofy millennial aimlessness with her beloved sitcom Broad City, the writer-actor is facing up to motherhood with new film Babes. But don’t worry: she hasn’t grown up too muchThis elegant portrait of an expat couple’s day-to-day existence delves into the complexities of love, home and social expectations EyePoint Pharmaceuticals Reports Second Quarter 2024 Financial Results and Highlights Recent Corporate Developments – Phase 3 LUGANO pivotal non-inferiority clinical trial of DURAVYU™ in wet AMD on track for first patient dosing in 2024 – – Positive twelve-month data from Phase 2 DAVIO 2 clinical trial evaluating DURAVYU for the treatment of wet AMD continue to demonstrate favorable safety and efficacy – – Phase 2 VERONA trial of DURAVYU in DME fully enrolled with topline data anticipated in Q1 2025 – – $280.2 million of cash and investments on June 30, 2024, with cash runway through Phase 3 wet AMD topline d4Front Ventures Corp. , a vertically integrated multi-state cannabis operator and retailer, will report its financial and operating results for the first quarter ended June 30, 2024, on Wednesday, August 14, 2024, after market close. The Company will host a conference call to discuss the results and provide an update on current business trends on August 14, 2024, at 5:00 p.m. Eastern Time.MONTREAL, Aug. 07, 2024 -- Osisko Development Corp. is pleased to provide an update on exploration activities at its 100%-owned Tintic Project , located in the historic East Tintic Mining District in central Utah, U.S.A. This includes results of recently completed surface and underground diamond drilling targeting potential copper-gold-molybdenum porphyry centers, underground chip saCAVE CREEK, AZ, Aug. 07, 2024 -- Endexx Corporation , a leading provider of innovative plant-based health and wellness products, today issued a correction to its previously reported financial results and highlighted the significant revenue growth achieved in recent months. Correction to Financial Report In the Q2 2024 Shareholder Report, the revenue for Q2 2024 was incorrectly stated as $3,275,735, which represents the revenue for the six-month period ending March 31,Sparkle’s NaaS successful proof of concept paves the way for commercial launch planned by the end of the yearROME, Aug. 07, 2024 -- Sparkle, the first international service provider in Italy and among the top global operators, announces the successful completion of a Network-as-a-Service Proof of Concept on a quantum-safe Internet use case. Realized in collaboration with leading companies Arqit Quantum Inc. , Intel, Adtran, and also supported by Telsy,
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