Intel's Revolutionary AI and Manufacturing Shakeup

Intel's new CEO, Lip-Bu Tan, is preparing significant changes in the company’s manufacturing and AI strategy to turn around the struggling tech giant. His plans include management restructuring, staff cuts, and improvements in chip manufacturing to recapture market leadership from competitors like Nvidia.

Intel's newly-appointed CEO, Lip-Bu Tan, is set to introduce sweeping changes to revitalize the technology giant's ailing performance, people familiar with the matter told Reuters. His strategy involves significant management restructuring and an overhaul of chip manufacturing, aiming to reverse the company's recent downturn.

At a recent town hall, Tan informed employees about upcoming "tough decisions" necessary to streamline operations. After years of operational missteps, Intel recorded a $19 billion loss in 2024. Tan will prioritize revamping Intel Foundry to attract new clients, including Microsoft and Amazon, thereby restoring financial health.

Maintaining an emphasis on AI, Tan seeks to boost production of AI-specific chips, with Intel's next-gen Panther Lake chip playing a key role. His approach aims to enhance manufacturing processes, fostering partnerships with giants like Nvidia and Google, and regaining the market's trust over the coming years.

(With inputs from agencies.)