Former Intel CEO tried to buy Nvidia back in 2005 for $20 billion

WTF?! Shortly aft taking nan reins of Intel's guidance successful 2005, CEO Paul Otellini projected to nan committee of board to get Nvidia. The GPU shaper was weighted astatine $20 cardinal backmost then, and Otellini was asking nan committee to o.k. an highly costly acquisition for a institution mostly dealing successful x86 machine CPUs. Today, Nvidia's valuation has surged into nan trillions acknowledgment to nan generative AI craze, while Intel is struggling for survival.

Intel missed a important opportunity a fewer years ago. The institution could person purchased Nvidia astatine a fraction of its existent value, but its attraction connected x86 architecture and guidance from nan committee worked against nan acquisition.

According to unnamed sources cited successful a New York Times report, Intel missed this "golden opportunity" while it was still Silicon Valley's ascendant chipmaker. Some committee members apparently recognized nan imaginable early domiciled of GPUs successful endeavor and information halfway markets, but ultimately, nan committee rejected nan deal.

After confronting nan board's skepticism, Otellini chose not to push nan connection further. Reflecting connected 2005, 1 attendee of nan confidential gathering described it arsenic a "fateful moment" successful nan history of Intel (and spot technology). Intel had a mediocre way grounds pinch mergers and acquisitions, and nan projected $20 cardinal woody would person marked nan astir costly acquisition ever attempted by nan company.

Intel executives erstwhile described nan 2005-era institution arsenic nan "largest single-cell organism connected nan planet" – an statement pinch a highly insular firm civilization and constricted openness to exertion extracurricular of x86 chips. Former Intel CEO Craig Barrett reportedly compared x86 exertion to nan creosote bush, a works known for releasing toxins to inhibit nan maturation of competing plants astir it.

Two decades ago, Intel's PC CPU business was thriving, allowing nan institution to make beardown profits for a time. Eventually, however, Intel was forced to face Nvidia's imaginable arsenic a competitor pinch nan Larrabee project, a weird hardware substance meant to widen nan x86 instruction group architecture into nan graphics realm. Although Larrabee yet failed, its proponent, Pat Gelsinger, is now Intel's CEO.

Also read: The Last Time Intel Tried to Make a Graphics Card

Today, Nvidia is weighted astatine complete $3 trillion connected nan banal market, astir 30 times Intel's value. GPUs person go basal for AI acceleration, and astir each awesome tech institution is vying to carve retired a successful business successful this area. Despite immoderate statement complete nan existent returns connected AI investments, it would beryllium premature to constitute Intel disconnected entirely.

Nvidia is presently weighted astatine complete $3 trillion connected nan banal market, astir 30 times Intel's value. GPUs person go nan cornerstone for AI acceleration, and everyone and their canine is trying to make a successful business retired of it. Despite immoderate statement complete nan existent returns connected AI investments, it would beryllium premature to constitute Intel disconnected entirely.