Intel's Missed Investment in OpenAI Haunts Its AI Aspirations

Intel's decision against a $1 billion stake in OpenAI in 2017 has left the chip giant struggling in the AI market, overshadowed by rivals Nvidia and AMD.

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.