[News] Intel’s AI Head Leaves for Nokia CEO, Sparking Potential Shift in AI Chip Strategy after Gelsinger’s Exit

Probably one of the most shocking executive shake-up in the tech industry this week, Justin Hotard, head of Intel’s Data Center and AI Group, is leaving to become Nokia’s CEO. This move, following ex-CEO Pat Gelsinger’s exit in December, 2024, could suggest a shift in Intel’s AI chip strategy, according to the analysis of CRN.

Nokia announced in a press release on February 10^th that Hotard will take over from current CEO Pekka Lundmark on April 1.

Hotard has been Intel’s EVP and GM of Data Center & AI Business Group since February, 2024, according to his LinkedIn profile. Before that, he stayed with Hewlett Packard for eight years, and had led the company’s AI Business Group for almost three years.

The CRN report, citing an Intel spokesperson, notes that Karin Eibschitz Segal, a seasoned veteran from the company, will step in as interim leader of DCAI.

AI Head Leaves Shortly after Gelsinger’s Departure

Notably, Hotard’s exit comes soon after Pat Gelsinger’s departure, which led to Michelle Johnston Holthaus and CFO David Zinsner being named interim co-CEOs. As CRN noted, Holthaus also took on the role of CEO of Intel Products, overseeing the company’s key chip design divisions, including Data Center and AI.

However, the new leadership seems to be shifting focus in AI. According to a previous report from Wccftech, Intel is no longer competing with NVIDIA in high-power AI and large-scale model training. Instead, it’s targeting a less crowded market with the cost-effective Gaudi 3 accelerator.

Nevertheless, the efforts seem to be further undermined. CRN reports that interim co-CEO Holthaus criticized the Gaudi brand, saying it lacks mass appeal. This follows Intel’s November earnings call, where Team Blue admitted Gaudi sales won’t hit the $500 million target for 2024, the report adds.

Scraps Falcon Shores, Shifts Focus to Rack-Scale AI

It is worth noting that at Intel’s earnings call in late January, the company confirmed that it is putting its Falcon Shores GPU design on hold, leaving the company without major new products for AI customers, according to a Reuters report.

Originally, the chip planned a late 2025 launch as the successor of Gaudi 3, but it now would be used as an internal test chip. Instead, the CRN report notes that Team Blue will focus on developing a new chip, Jaguar Shores, aimed at creating a “system-level solution at rack scale” instead of just silicon.

According to CRN, this move aligns Intel’s strategy more closely with NVIDIA, which is advancing its Blackwell GPU architecture.

As Intel pivots from its original niche market to a more mainstream path, can it turn things around? At this critical moment, as the company faces challenges in reclaiming its footing in the data center market, the departure of its AI leader might not bode well.

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(Photo credit: Justin Hotard’s LinkedIn)