In 2005, we had no idea of the artificial intelligence boom that would occur a few years later. But Intel’s directors, whose chips serve as the electronic brains of most computers, faced a decision that could change the evolution of their revolutionary technology.
Paul Otellini, Intel’s chief executive at the time, presented his board with the surprising idea of buying Nvidia, a Silicon Valley startup known for its chips used in computer graphics. Its price tag reaches $20 billion.
Some Intel executives believe that the fundamental design of graphics chips could eventually take on a new important role in data centers, and that this approach will eventually dominate AI systems. was.
But two people familiar with board discussions said they spoke only on condition of anonymity because the meeting was confidential. Intel had a poor track record of absorbing companies. The deal would be Intel’s most expensive acquisition to date.
Facing skepticism from the board, Otellini, who died in 2017, withdrew and his proposal went no further. In retrospect, one person who attended the meeting said it was a “fateful moment.”
Today, Nvidia is the unparalleled AI chip king and one of the world’s most valuable companies, but Intel, once a semiconductor superpower, is reeling from the AI gold rush and is struggling to regain momentum. I can’t. Nvidia’s stock market value, long a fraction of Intel’s, is now worth more than $3 trillion, roughly 30 times more than the struggling Silicon Valley icon, which was worth less than $100 billion. .
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