Intel is moving into GPUs and has hired a chief architect, CEO Lip-Bu Tan says

Intel is making a significant move into the graphics processing unit (GPU) market, as announced by CEO Lip-Bu Tan during the Cisco AI Summit. The company has appointed a new chief architect specifically tasked with developing GPUs, which are crucial for powering large language models and are in high demand due to the growing interest in artificial intelligence infrastructure and data centers. Tan revealed that the recruitment of this new executive required "some persuasion," though he did not disclose the name of the individual. This strategic hire comes at a time when Intel is aiming to regain its footing in a competitive landscape dominated by major players like Nvidia and Advanced Micro Devices. Despite a rally in Intel's stock over the past year, fueled by optimism regarding its foundry business, the company has mainly focused on producing chips for its own use. In recent years, Intel has faced challenges, falling behind its rivals that have capitalized on the AI data center boom. Earlier this month, issues with production and supply chains overshadowed the chipmaker's better-than-expected quarterly earnings. Investors are also eagerly awaiting more information regarding key customers for its foundry segment. Last year marked a turning point for Intel, with substantial investments coming from the U.S. government, SoftBank, and Nvidia, signaling a renewed interest in the company's future prospects.