Intel, once the dominant player in computer processing, had a chance to get involved with cutting-edge artificial intelligence research years ago but decided against it. New reports show the chip giant was in discussions in 2017-18 to take a significant stake in OpenAI, the renowned AI safety startup.
Sources familiar with the matter say Intel executives met several times with OpenAI leaders to explore a potential $1 billion cash investment for a 15% holding. There were also talks of Intel providing hardware to OpenAI at cost in return for an additional 15% stake. However, Intel's then-CEO reportedly had doubts about the commercial potential of generative AI, the field OpenAI was pioneering.
The deal ultimately fell through due to questions within Intel around how soon these new AI models could generate profitable products. There were also concerns raised that OpenAI's requirements might burden Intel's data center operations. As a result, the opportunity to get an early foothold in the fast-growing AI industry was passed over.
This missed connection looms large today as OpenAI has since developed hugely influential technologies like ChatGPT. Reports say OpenAI is now valued at around $80 billion after diversifying its backers. Meanwhile, Intel's AI progress has lagged behind rivals like Nvidia that adapted quicker to new processor needs.
Once the undisputed leader in computing chips, Intel has ceded ground in AI to specialized designs. Its falling stock price reflects the ongoing difficulty transitioning from traditional CPUs to newer neural net-based solutions. With hindsight, taking a chance on OpenAI's visionary work could have put Intel on a different trajectory during this pivotal shift to machine intelligence.
