Intel Plans In-House AI Development to Compete with Nvidia

Intel, under new CEO Lip-Bu Tan, is pivoting from acquiring AI startups to developing its own artificial intelligence technologies in-house, aiming to compete more directly with Nvidia’s dominance in the AI chip market. Tan’s strategy involves building a full-stack AI offering—encompassing chips, software, and systems—by refining existing Intel products for applications like robotics and autonomous agents, and developing edge computing chips for AI outside traditional data centers. This marks a departure from Intel’s previous acquisition-driven approach, which failed to significantly advance its AI position, aside from Mobileye’s success in autonomous driving. The company is also avoiding major acquisitions in the near future due to balance sheet concerns, focusing instead on cost-cutting and internal innovation. Analysts view the plan as ambitious but risky, noting that Intel faces strong competition from industry leaders like Nvidia and tech giants such as Amazon and Google, who are designing their own AI chips. Success may hinge on Intel’s ability to deliver robust software support alongside its hardware, a challenge that remains uncertain.