Intel's new CEO, Lip-Bu Tan, stressed the importance of focusing on generative artificial intelligence and emerging software technologies nearly three years back, as he accepted the Semiconductor Industry Association's (SIA) Robert N. Noyce Award in November 2022. Lip-Bu's appointment to the top role at Intel was announced by the firm earlier this week after a three-month vacuum following the departure of its former CEO, Patrick Gelsinger. In his first message to workers after his appointment, Lip-Bu also highlighted the need for teamwork and customer satisfaction. His comments appeared to draw from his approach at software firm Cadence, whose turnaround has made the CEO into one of the most revered figures in the industry.
Intel CEO Had Stressed Teamwork & Leapfrogging At SIA Speech Two Years Back
In his remarks at his SIA acceptance speech in 2022, Lip-Bu shared that he had found the time to "look at the bigger picture." He proceeded to highlight areas that he was passionate about. These included "advanced packaging," "new materials," the infrastructure required to store "massive data" and "Software 2.0." Lip-Bu outlined that Software 2.0 defines the hardware that it needs and that it was a "goldmine" that he was aggressively investing into.
Along with Software 2.0, the now Intel CEO also shared that the "second area that I'm excited about is AI machine learning, foundation models, and generative AI content and application." These areas are "something that I'm very passionate [about]," he shared.
At the time Lip-Bu outlined the importance of generative artificial intelligence, OpenAI had yet to publicly release its ChatGPT chatbot. ChatGPT's public release sparked an AI wave on Wall Street which sent NVIDIA's shares soaring as its GPUs were used to train ChatGPT.
However, while NVIDIA benefited from the surging sentiment for AI, Intel faltered in the background. The firm's AI products were unable to compete with NVIDIA's AI GPUs, which, despite the recent concerns about lower AI spending, are nevertheless the gold standard for AI computing.
The rest of Lip-Bu's speech mirrored his letter to Intel employees after he took over. He outlined in 2022 that he admired Henry David Thoreau's contrarian philosophy that drove his decisions to invest in the semiconductor industry when he set up his venture capital firm. Lip-Bu revealed that after he took over at Cadence, he received 300 emails and had to respond to each of them.
At Cadence, the situation was "particularly challenging" at the beginning, Lip-Bu shared. At Cadence, his team focused on "innovation, culture, and customers," he remarked. According to him, innovation is key to function in the technology industry, as leapfrog innovation is the leading driver of product performance.
His letter to Intel employees also stressed on teamwork, leapfrogging and customer satisfaction. Inte's shares have gained nearly 15% since his appointment, despite Lip-Bu asserting that he will make Intel a world class foundry. His success in turning around Cadence and driving investment in the chip industry have injected optimism into the shares. Over the year, Intel's stock is down by 44% but has marked 17% in year-to-date gains.
