A company that seized the investment opportunity of OpenAI seven years ago… The stock price is ‘plummeting’.

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, ‘Intel had an opportunity to acquire a stake in OpenAI, a chatbot developer from 7 years ago, as it embarked on a large-scale restructuring due to its poor performance, but chose to give up on it, Reuters reported on the 7th (local time).’,
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, ‘According to sources, Intel discussed options such as buying a 15% stake in OpenAI for $1 billion in cash over several months in 2017 and 2018.’,
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, ‘There were also discussions about acquiring an additional 15% stake if Intel provided AI chips and data centers at cost for OpenAI.’,
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, ‘The sources explained, “OpenAI was interested in Intel’s investment because it could reduce its dependence on Nvidia chips and build its own infrastructure.”‘,
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, ‘However, the discussions did not progress any further.’,
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, ‘At the time, Intel’s then-CEO Bob Swan decided not to invest in OpenAI because he did not believe there would be a way to recoup the investment in OpenAI even if generative AI was released in the near future.’,
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, ‘The fact that Intel’s data center division did not want to provide products at cost for OpenAI also contributed to the deal not being finalized.’,
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, ‘Following that, OpenAI formed a strategic partnership with Microsoft in 2019, receiving a total investment of $13 billion from Microsoft and leading the AI trend by launching ChatGPT in November 2022.’,
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, ‘On the other hand, Intel has been overtaken by AMD in its core business of PC central processing units (CPUs), and its graphic processing units (GPUs), which are the basis for AI chips, greatly lag behind Nvidia, causing it to lose its position as a semiconductor empire.’,
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, ‘Reuters stated, “Not investing in OpenAI is seen as one of Intel’s strategic failures as a leader in PC chips in the 1990s and 2000s, which resulted in falling behind in the AI era,” adding, “(If they had invested), the situation would have been significantly different.”‘,
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, ‘Intel’s second-quarter performance announced on the 2nd fell short of market expectations, and its third-quarter outlook is expected to fall below Wall Street’s expectations.’,
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, ‘With poor performance, Intel announced a restructuring plan to cut costs by $10 billion.’,
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, ‘Initially, they plan to reduce over 15% of their total workforce, more than 15,000 employees, and in the fourth quarter, they decided not to pay dividends and cut annual capital expenditures by more than 20%.’,
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, ‘The stock price plummeted by 26% the day after the earnings announcement, recording the largest drop since 1974. The stock price fell to the $21 range, hitting its lowest level since April 2013.’,
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, ‘(Photo=Yonhap News)’,
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