But Intel's most costly whiff is in AI — and it's a big reason Gelsinger was removed.
Nvidia's GPUs, originally created for video games, have become the critical hardware in the development of power-hungry AI models. Intel's CPU, formerly the most important and expensive part in a server, has become an afterthought in an AI server. The GPUs Nvidia will ship in 2025 don't even need an Intel CPU — many of them are paired to an Nvidia-designed ARM-based chip.
As Nvidia has reported revenue growth of at least 94% for the past six quarters, Intel has been forced into downsizing mode. Sales have declined in nine of the past 11 periods. Intel announced in August that it was cutting 15,000 jobs, or about 15% of its workforce.