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Intel’s new CEO Lip-Bu Tan has made his first major leadership move, according to a memo reviewed by Reuters. Intel’s data center and AI chip groups, as well as its personal-computer chip group, will now report directly to Tan. He has also promoted networking chip head Sachin Katti to serve as both chief technology officer and head of artificial intelligence.
These moves align with Tan’s plan to streamline Intel’s bloated middle management, which he sees as a major factor slowing decision-making, as the report notes. They also reflect his broader goal of refocusing Intel as an engineering-driven company under his leadership.
Notably, Katti will now be responsible for developing Intel’s new AI strategy. The report highlights that although Intel has acquired several AI chip startups in recent years, it has struggled to establish a coherent plan to challenge NVIDIA. As a result, the company is in need of a broad overhaul of both its AI strategy and product roadmap.
In late January, Intel announced that it will not move forward with its Falcon Shores AI chip. At the time, then-co-CEO Michelle Johnston Holthaus emphasized that while AI data centers are a strategic priority for Intel, the company has yet to establish a meaningful presence in the cloud-based AI data center market, as noted by TechCrunch.
Other Moves by Tan: Divesting Non-Core Assets
Beyond management changes, Tan has also been pursuing broader structural reforms at Intel. He previously stated that a successful turnaround would require divesting non-core assets. According to Liberty Times, citing Reuters, Intel announced on April 14 that it will sell a 51% stake in its subsidiary Altera to private equity firm Silver Lake for USD 4.46 billion, in a move aimed at sharpening its focus on core businesses. The transaction is expected to close in the second half of 2025.
Further Challenges for Intel: Potential Restrictions on Gaudi Sales in China
Meanwhile, Intel faces new challenges. According to Reuters, citing Financial Times, the company now requires a license to sell certain high-end AI chips, such as its Gaudi series, to the Chinese market, following similar restrictions imposed on NVIDIA and AMD.
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(Photo credit: Intel)
