Hindsight is 20/20, and a new report from Reuters suggests that Intel’s path in 2024 could have been vastly different if they hadn’t turned down an opportunity to invest in OpenAI. According to four individuals with direct knowledge of the situation, Intel explored acquiring a 15% stake in OpenAI back in 2017 and 2018. These discussions spanned several months, but ultimately, then-CEO Bob Swan decided against the investment, believing generative AI wouldn’t become a significant market force and Intel wouldn’t recoup its investment. This potential investment was reportedly worth $1 billion for a 15% stake. Given OpenAI’s current valuation of approximately $80 billion, it’s easy to see why this decision is being scrutinized today.
The deal also included an intriguing proposition: Intel would manufacture hardware for the then-startup at cost for an additional 15% stake, potentially bringing their total ownership in OpenAI to 30%. This agreement predates Microsoft’s $1 billion investment in OpenAI in 2019, suggesting that Intel could have been a major player in the company’s early stages. However, Reuters notes that Intel’s data center team resisted the deal, as they didn’t want to provide discounted hardware for OpenAI.
While Intel and OpenAI declined to comment on the report, the story highlights a significant misstep for the company. Intel’s reluctance or delay in embracing the AI market with its chips is widely seen as a critical error for a company that was once the undisputed leader in high-performance computing. This missed opportunity to invest in OpenAI, coupled with their delayed entry into the AI market, raises questions about Intel’s future in a rapidly evolving technological landscape.
