Question Intel's future after Pat Gelsinger

[Thunder 57]

The new CEO plans to halve the workforce for intel.

Brutal but needs to be done i guess, if there is any hope:

Goodbye Intel - new CEO Lip Bu Tan will lay off half the workforce to save the company from possible bankruptcy

One of the biggest signs of what’s ahead for Intel isn’t just who Tan is, but who he disagreed with. While his ties to SoftBank are notable, his past role at

eladelantado.com

I doubt that. I don't see that being reported anywhere.

 

[Joe NYC]

The new CEO plans to halve the workforce for intel.

Brutal but needs to be done i guess, if there is any hope:

Goodbye Intel - new CEO Lip Bu Tan will lay off half the workforce to save the company from possible bankruptcy

One of the biggest signs of what’s ahead for Intel isn’t just who Tan is, but who he disagreed with. While his ties to SoftBank are notable, his past role at

eladelantado.com

There is not an actual quote from LBT saying it, AFAIK

 

[controlflow]

The new CEO plans to halve the workforce for intel.

Brutal but needs to be done i guess, if there is any hope:

Goodbye Intel - new CEO Lip Bu Tan will lay off half the workforce to save the company from possible bankruptcy

One of the biggest signs of what’s ahead for Intel isn’t just who Tan is, but who he disagreed with. While his ties to SoftBank are notable, his past role at

eladelantado.com

Clickbait garbage. Article doesn't match title. Doesn't appear to be written by an actual person either.

 

[Aapje]

I like his keynote:

Of course words are cheap, but he is saying the right words, in my opinion.

 

[Markfw]

I like his keynote:

Of course words are cheap, but he is saying the right words, in my opinion.

and for those that don't want to sit and listen to over an hour of stuff, summary of what he is saying please.

 

[Thibsie]

Only heard the beginning but it is refreshing to hear a guy who's (at least he says so, that's a beginning) putting forward is humility.
Exact opposite of Pat. From an image point of view, this is a win IMO.

Also says he wants Intel to be engineering-focused company, both product and foundry.

 

[gdansk]

I heard simplification, focusing on balance sheets, AI, software-first. And he'll make small, focused teams perfect. I don't see it as a particularly humble. Or likely that Intel can switch to work with that approach? No less expand into the growing market with product line simplification.

 

[dr1337]

Dude kinda has a steve jobs vibe, he wants to over promise and under-deliver. He gave a story from his time at Cadence and he would spend a lot of time on asking customers to review and grade their products. And often products would be rated quite poorly but those experiences helped him learn how to build better products.

His main point for intel is changing the culture of the company, and seeing as its universally agreed intel has a middle management problem. Then he goes on to describe how he's going to focus on innovation with smaller focused teams and incubation for engineers.

Near the end he starts talking about AI and stuff like robotics, but it seems he is overall driven to keep the core business strong and competitive. About half of his AI spiel is about using AI for innovating inside intel itself and improving efficiency.

Closing with announcing panther lake on 18a by the end of the year, addressing customers not liking current products, building up the foundry with close meetings and building trust. He talks about earning the trust of customers and the last thing he says is he wants more criticism.

 

[Aapje]

and for those that don't want to sit and listen to over an hour of stuff, summary of what he is saying please.

Focusing on what customers want. Not first developing something and seeking a market for it, but solving the problems of customers, with a large focus on software, and the hardware to enable that.

Actually getting stuff to market. Demanding first time right. Focus on engineering. Focus on getting great people (back) to Intel. Underpromise and overdeliver.

Also, between the lines I'm reading that he's trying to woo one or more big customers for the foundry to have the kind of relationship between TSMC and Apple. But this might be projection, since this is what I think they should do.

 

[Gideon]

Ex-anandtech Ian Cutress has a prettty good impressions thread on the subject:

https://twitter.com/x/status/1906818283623653682

This is sort of a live-blog with pictures so the text only give half the context but i extract some arbitrary parts from the thread here:

Broad strokes, 'LBT is prepared to lead'. Agrees it's a challenging task.

Why take on this job? I love this company. Hard to watch it's struggle. Can't stay on the sideline knowing could turn things around. It won't be easy. It's been a tough period for a while. Fell behind on innovation. Too slow to adapt and meet customers needs. Intel will improve, need everyone to be honest. Harsh feedback is the most valuable. Intel will reinvent how it meets customer needs. Intel will be a true partner, not just a vendor. Intel will win as a team.

...
From day 1, act as a startup. Allow engineers to innovate from within and incubate small focused teams that can move fast to take on incumbents. This will unleash intel's potential and attract talent. It will be the most exciting period in innovation at Intel.

AI, photonics. Keeping an eye on quantum. AI has changed how we interact with the world.

Intel will refocus on core business and amplify using AI. In past, Intel worked inside out - built hardware, then worked on software. Moving forward, we start with problems, build software, and software decides hardware. AI driven system design for compute architecture platforms.

...

Biggest focus in DCAI is regaining the superior workforce. Had a bit of brain drain, will hire the best. Not happy with current DCAI product position, Intel is going to right those lessons and provide competition again.

World leading foundry. Weekly internal updates. Defining competitive path forward, putting the right people in place to scale business, drive efficiency. Principle of trust with foundry customers. Working with customers and design style, how to adapt to customers prefence.

Going to leverage extensive experience from Cadence.

18A Panther Lake coming 2H. Improving yield, customer service. Foundry will take time, work with customers very closely.

I particularly like the focus on building software first and then hardware based on that, no the other way around.

All in all, he:

• Acknowledged Intel has a middle-management problem (and probably directs most of the restructuring/layoffs there)
• Enjoys a startup mentality
  • wants small focused teams that move fast to take on incumbents
  • hire the best for those roles
  • plans to talk to engineers directly
• Software directs hardware design (not the other way around)

I certainly like the way he talks a lot more than what Pat said. Let's now see if he can pull it off

 

[fastandfurious6]

• plans to talk to engineers directly

it's baffling to think how this was ever considered a bad idea in the first place...

 

[DrMrLordX]

There's at least one story that LBT plans to spin off multiple non-critical business divisions. Whatever that means is not yet defined.

MSN

 

[desrever]

it's baffling to think how this was ever considered a bad idea in the first place...

Most engineers loath talking directly to management.

 

[adamge]

There's at least one story that LBT plans to spin off multiple non-critical business divisions. Whatever that means is not yet defined.

MSN

*cough* Mobileye *cough*

 

[Joe NYC]

*cough* Mobileye *cough*

The one of more interest to AMD is Altera.

I would not be surprised if the turmoil surrounding Altera is helping AMD / Xilinx win some business.

 

[igor_kavinski]

How come no one is mentioning that he sounds like Bruce Lee's grandpa?

and for those that don't want to sit and listen to over an hour of stuff, summary of what he is saying please.

Spoiler: ChatGPT rewrite of transcript

Important Information:
This presentation includes statements about future plans and expectations, known as forward-looking statements. These are based on current expectations and involve various risks and uncertainties that could lead to actual results being significantly different from what is stated. For more details on these risks, please refer to our latest earnings release and SEC filings available at www.intc.com.

---

Unleashing Greatness:
Greatness exists within all of us. It's easy to overlook, but it's there, waiting to be ignited. Let's tap into that potential together. At Intel, we understand how to amplify your abilities, enabling you to launch into the future with more creativity, innovation, and intelligence. Your inner greatness is a superpower, and helping you unleash it is our mission.

---

Introduction:
Please welcome Lip-Bu Tan, the Chief Executive Officer.

---

CEO's Address:
Good afternoon! Thank you for joining us at Vision 2025. I appreciate our sponsors and the speakers lined up for workshops. I hope you find value in this event.
I’m grateful for your support as I lead Intel during this pivotal moment in our history. It’s been just 14 days since I joined, and while it’s a short time, I’ve already made some clear observations and plans that I want to share with you today.
My top priority has been to connect with our customers. I have long-standing friendships with many of you, and your honest feedback is invaluable. From our initial conversations, it's clear that we have a lot of work to do. We haven't met your expectations in some areas, and I am committed to correcting past mistakes and rebuilding your trust. My motto is simple: under-promise and over-deliver.
I’m focusing on building strong engineering teams. I believe we’ve lost some talent over the years, and I want to change that. Our goal is to create a culture that empowers innovation so that we can develop the best products and become a leading foundry.

---

My Background:
Let me share a bit about myself. I grew up in Malaysia and Singapore, where I studied physics. I later moved to the U.S. for graduate studies in nuclear engineering at MIT. My education helped me understand how to solve complex technical problems.
After the Three Mile Island accident, I decided to leave my PhD program and moved to San Francisco, where I built a successful venture capital firm that started with just $3 million.
Inspired by thinkers like Henry David Thoreau, I value truth and open communication. I believe in having honest relationships with customers, partners, and my team.

---

Experience and Vision:
My experiences have taught me a lot, particularly during my time at Cadence Design Systems, where I transformed the company and improved product development, leading to significant growth and shareholder returns. Now, I’m committed to bringing that same focus to Intel.
Intel is an iconic company that plays a vital role in our industry and for the U.S. I care deeply about its success. I was motivated to step into this role because I cannot stand by and watch the company struggle. I recognize that it’s been a tough period for Intel, and we need to innovate and improve to meet your needs.
I encourage you to be honest with us this week. Your feedback is crucial for understanding how we can do better. At Cadence, I learned the value of harsh feedback, which helped us reinvent how we engage with customers.

---

Teamwork and Culture:
Building a strong team culture is essential. Just like in sports, success is a team effort. I want to foster a culture at Intel where we work together, learn from mistakes, and strive for excellence.
We will focus on innovation and efficiency, maintaining a startup mentality even as a large company. It’s important to empower our engineers to innovate freely.

---

Our Priorities:
As we move forward, we will prioritize innovation, strengthen our product offerings, and work on our foundry strategy to meet the growing demand for chip production. The changes in technology—especially with AI—require us to adapt quickly.
Going forward, we will start with the problems you're facing and work backward to create solutions. We will adopt a "software first" approach and invest in innovative AI-driven systems to enhance our products.

---

Final Thoughts:
Intel is committed to rebuilding trust and delivering on our promises. I am here for the long term, dedicated to creating an engineering-first culture. Your feedback is essential in this journey, and I want to hear from you.
Thank you for joining us at Vision 2025. Enjoy the networking and events, and I look forward to working together to create a brighter future for Intel. Thank you!

 

[Markfw]

How come no one is mentioning that he sounds like Bruce Lee's grandpa?

Thanks for this !

 

[fastandfurious6]

Most engineers loath talking directly to management.

I guess this often happens because of the precedent of management being oblivious of the tech, or having all that middle management non-tech layer relaying all info to other non-tech upper layers resulting in a mess

When management understands the tech stuff then why fret, communication works better directly, everyone's happier

🌞

 

[igor_kavinski]

I guess this often happens because of the precedent of management being oblivious of the tech, or having all that middle management non-tech layer relaying all info to other non-tech upper layers resulting in a mess

100% agree. Non-tech people (the older the worse) take tech wayy too easy. Zero idea how much effort is involved in the simplest of things. One idiot Ph.D. said directly to my face that he thinks of IT as a maid. There to do his bidding. Obviously when such people are involved in important tech related decisions, they will either create a mess or if they are super lucky, have excellent engineers who will make things happen and then claim all the credit for the hard work of their engineers with zero loss of time and sleep and other life's priorities.

Intel's problems were always going to happen when their higher positions got filled with people with no respect for the complexities of technology. If they had any idea, the moment AMD released Zen 1, they would've snapped back into action and taken things very seriously. Instead, they just made jokes, being too stupid to realize or even predict that AMD would maintain their cadence like a rabbit cranking out babies.

 

[DavidC1]

There's at least one story that LBT plans to spin off multiple non-critical business divisions. Whatever that means is not yet defined.

There's not much to cut anymore.

-Embedded
-dGPU
-OpenSource efforts: Like OneAPI
-FPGA
-WiFi
-Ethernet and IPU

Other than maybe FPGA, it will impact core business too. I guess if they really want to cut it, they can cut all connectivity, so no WiFi, Ethernet, and IPU. Embedded sells processors, so that's kind of a core too.

I still very much dislike the idea of cutting out dGPU. Going back to integrated means continued loss of quality, because they'll lose the incentive to do better.

Keep just server/AI GPU? That makes no sense. The most successful businesses started focusing on consumer. The most picky, the most demanding, market is THE consumer market, because it's a large market in addition to having stringent power and cost requirements which forces the design to be efficient in all ways.

Data center focused companies are nowhere now. Because you sell super expensive parts, so you don't learn to be price efficient, and because the volume is super low you don't get learnings from having to serve massive customer base.