After years of failed AI deals, Intel plans homegrown challenge to Nvidia

Intel Restructures to Tackle AI Domination

Intel is making a bold move to reestablish itself in the rapidly evolving artificial intelligence (AI) sector by developing new in-house technologies aimed at rivaling Nvidia, the current industry leader in AI hardware. After a series of unsuccessful AI ventures and partnerships over the past several years, Intel is reorganizing its business structure and product focus, indicating a renewed determination to compete in this critical market[1][4].

Organizational Shakeup and New Leadership

Intel recently split its Data Center and AI Group into two separate divisions to streamline its technology strategy. The newly named Data Center Group will concentrate on CPUs, while a restructured AI and CTO organization, led by newly appointed chief technology officer Sachin Katti, will steer the company’s AI chip roadmap and strategy[1]. This reorganization reflects Intel CEO's effort to cut through bureaucracy and reignite innovation throughout the company.

Accelerating AI Hardware and Software

Intel’s renewed AI focus comes as the company prepares to launch several next-generation processors designed for AI workloads:
  • Core Ultra 200V Series: These processors, which power Copilot+ PCs, offer cutting-edge AI enhancements and robust efficiency for businesses, content creators, and gamers alike[2][3].
  • Intel Xeon 6 Processors: Debuted in February, these chips target data centers and edge applications, boasting up to 1.9x improved AI performance versus previous generations[3].
  • Intel 18A Process Technology: Scheduled to ramp up in the second half of 2025, supporting the launch of Intel’s Panther Lake processors and future SKUs aimed directly at high-performance AI tasks[3][4].

Strategic Shifts and Partnerships

To concentrate on its core business and strengthen its push into AI, Intel recently sold a majority stake in its programmable chip unit Altera, while maintaining a significant interest in future developments[3]. This financial maneuver is part of a broader effort to reposition the company and invest heavily in next-generation AI infrastructure.

Looking Ahead: Intel’s AI Roadmap

Intel’s updated product strategy, unveiled at the Intel Vision 2025 event, emphasizes close collaboration with major customers and consulting partners to accelerate enterprise AI. Key highlights include:
  • Strategic investment in AI hardware and software to support a broad ecosystem.
  • A focus on modernizing enterprise workloads and delivering performance gains for AI-driven applications[4].
This renewed commitment signals Intel's determination to regain ground in the AI hardware race and position itself as a competitive alternative to Nvidia as artificial intelligence shapes the future of computing.