Overview

• In 2017-2018, Intel had the opportunity to buy a 15% stake in OpenAI for $1 billion, with an option for an additional 15% if it supplied hardware at cost.
• Then-CEO Bob Swan decided against the investment, doubting the near-term market potential of generative AI models.
• OpenAI's success with ChatGPT and its current valuation of around $80 billion highlight the magnitude of Intel's missed opportunity.
• Intel's data center unit also opposed the deal due to unwillingness to produce hardware at cost, contributing to the decision.
• Intel's failure to invest in AI chips has led to significant market losses, with its current valuation dropping below $100 billion for the first time in decades.