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Intel CEO Pat Gelsinger's Dream Job Takes a Nightmarish Turn

42 points by uladzislau 2y ago

gary_0 2y ago
https://archive.ph/8JmHY https://archive.ph/8JmHY
roody15 2y ago
With the latest snafu of defective 13/14th gen intel CPU’s things are not looking good. So far Intel has not handled this well and likely looking at major class action lawsuits.
- dragontamer 2y ago
  Intel is in a SNAFU that's far beyond just a couple of unreliable chips coming out recently. The issue is the latest earnings report: quarterly net losses, operational losses, 15% cut in staff, diminishing CapEx (aka: less investment into future factories)... and perhaps most important/indicative of the situation... Intel is cancelling its Q4 Dividend. IE: Intel is no longer a reliable dividend stock with reliable profits. Investors are now concerned about what Intel... as a company... is today. There's fundamental top-down strategic issues with the company that remain unresolved as of this week.
  - Agingcoder 2y ago
    Isn’t this just a consequence of intel making bad products and therefore not making good money ?
  - shrimp_emoji 2y ago
    Yep. Intel is an empire in decline. It's a powerful case study in how you can have All The Money and still fuck up catastrophically. It's Ice America -- it's a bloated enemy in a crumbling castle!
  - bcrl 2y ago
    There's also the looming overhead caused by all the government subsidies that Intel has been taking. Building fabs means hiring people to work in those fabs which is a huge operating expense Intel may be obligated to cover once construction completes. It would be very interesting to see the contribution agreements that Intel has signed with various governments to gain a better understanding of the scale of that future liability.
COGlory 2y ago
https://www.intel.com/content/www/us/en/newsroom/news/us-chips-act-intel-direct-funding.html#gs.d5afbj https://www.intel.com/content/www/us/en/newsroom/news/us-chi... >Intel also expects to benefit from a U.S. Treasury Department Investment Tax Credit (ITC) of up to 25% on more than $100 billion in qualified investments and eligibility for federal loans up to $11 billion. >Intel’s investments are expected to create more than 10,000 company jobs and nearly 20,000 construction jobs, and to support more than 50,000 indirect jobs with suppliers and supporting industries. Yeah that didn't happen.
- financetechbro 2y ago
  4 months is not enough time to draw hard conclusions
frognumber 2y ago
Intel market cap: 91B NVidia market cap: 2.64T Antitrust issues aside, NVidia could acquire Intel for about 1/30th of their stock. That would result in having an end-to-end platform play like AMD/ATI, about 5x the number of employees, a tremendous number of technologies (compilers, numerical libraries, etc.), massive diversification, and actually rather better fab access in both directions. Thoughts?
- electriclove 2y ago
  Why would Nvidia want 5x the employees?
  - wkat4242 2y ago
    They wouldn't but they could let some go. On the other hand they'd purchase the most common desktop ISA and a lot of IP. It would make so much sense. But like the OP said, antitrust is surely why they're not even trying. They already got slammed with ARM.
  - frognumber 2y ago
    It's unclear to me if that would help them expand and grow or if it'd be deadweight and overhead. FWIW, I was pointing out aspects of such an acquisition, and looking for honest thoughts. I have no idea if it's a good idea or bad idea. I'm really quite divided.
- azmodeus 2y ago
  It could be a risk to their culture, Nvidia could become more like Intel instead of Intel becoming more like Nvidia
  - passion__desire 2y ago
    Nvidia, being the buying party, would dictate the direction of flow of cultural values.
    - 2y ago
ManuelKiessling 2y ago
This is so not my home turf so this might be a really stupid question, but: I get that GPUs are all the rage now because LLMs etc., but do all those giant GPU clusters that are presumably built right now not ALSO need CPUs to run the boring non-llm stuff (like, you know, the OS for example), which should result in growing demand for Intel’s offerings…?
- Agingcoder 2y ago
  The main problem is amd, which sells better products in a large number of markets
  - gpapilion 2y ago
    I think the main problem is the investment in gpus delayed the adoption of ddr5 based platforms for servers.
rasz 2y ago
Is it a good sign when CEO of Intel starts praying in public on twitter after earnings call? Asking for a friend. https://x.com/PGelsinger/status/1820129317122080977 https://x.com/PGelsinger/status/1820129317122080977 >@PGelsinger >“Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways” Proverbs 4:25-26
- gregw2 2y ago
  Tell your friend not to worry, it was a proverb and not a prayer and he didn't start after the earnings call, he's done it weekly for a while and nobody cared till it made a juicy headline to irritate you and make you curious and click.

42 points by uladzislau 2y ago

https://archive.ph/8JmHY https://archive.ph/8JmHY

With the latest snafu of defective 13/14th gen intel CPU’s things are not looking good. So far Intel has not handled this well and likely looking at major class action lawsuits.

dragontamer 2y ago
Intel is in a SNAFU that's far beyond just a couple of unreliable chips coming out recently. The issue is the latest earnings report: quarterly net losses, operational losses, 15% cut in staff, diminishing CapEx (aka: less investment into future factories)... and perhaps most important/indicative of the situation... Intel is cancelling its Q4 Dividend. IE: Intel is no longer a reliable dividend stock with reliable profits. Investors are now concerned about what Intel... as a company... is today. There's fundamental top-down strategic issues with the company that remain unresolved as of this week.
- Agingcoder 2y ago
  Isn’t this just a consequence of intel making bad products and therefore not making good money ?
- shrimp_emoji 2y ago
  Yep. Intel is an empire in decline. It's a powerful case study in how you can have All The Money and still fuck up catastrophically. It's Ice America -- it's a bloated enemy in a crumbling castle!
- bcrl 2y ago
  There's also the looming overhead caused by all the government subsidies that Intel has been taking. Building fabs means hiring people to work in those fabs which is a huge operating expense Intel may be obligated to cover once construction completes. It would be very interesting to see the contribution agreements that Intel has signed with various governments to gain a better understanding of the scale of that future liability.

COGlory 2y ago

https://www.intel.com/content/www/us/en/newsroom/news/us-chips-act-intel-direct-funding.html#gs.d5afbj https://www.intel.com/content/www/us/en/newsroom/news/us-chi... >Intel also expects to benefit from a U.S. Treasury Department Investment Tax Credit (ITC) of up to 25% on more than $100 billion in qualified investments and eligibility for federal loans up to $11 billion. >Intel’s investments are expected to create more than 10,000 company jobs and nearly 20,000 construction jobs, and to support more than 50,000 indirect jobs with suppliers and supporting industries. Yeah that didn't happen.

financetechbro 2y ago
4 months is not enough time to draw hard conclusions

frognumber 2y ago

Intel market cap: 91B NVidia market cap: 2.64T Antitrust issues aside, NVidia could acquire Intel for about 1/30th of their stock. That would result in having an end-to-end platform play like AMD/ATI, about 5x the number of employees, a tremendous number of technologies (compilers, numerical libraries, etc.), massive diversification, and actually rather better fab access in both directions. Thoughts?

electriclove 2y ago
Why would Nvidia want 5x the employees?
- wkat4242 2y ago
  They wouldn't but they could let some go. On the other hand they'd purchase the most common desktop ISA and a lot of IP. It would make so much sense. But like the OP said, antitrust is surely why they're not even trying. They already got slammed with ARM.
- frognumber 2y ago
  It's unclear to me if that would help them expand and grow or if it'd be deadweight and overhead. FWIW, I was pointing out aspects of such an acquisition, and looking for honest thoughts. I have no idea if it's a good idea or bad idea. I'm really quite divided.
azmodeus 2y ago
It could be a risk to their culture, Nvidia could become more like Intel instead of Intel becoming more like Nvidia
- passion__desire 2y ago
  Nvidia, being the buying party, would dictate the direction of flow of cultural values.
  - 2y ago

ManuelKiessling 2y ago

This is so not my home turf so this might be a really stupid question, but: I get that GPUs are all the rage now because LLMs etc., but do all those giant GPU clusters that are presumably built right now not ALSO need CPUs to run the boring non-llm stuff (like, you know, the OS for example), which should result in growing demand for Intel’s offerings…?

Agingcoder 2y ago
The main problem is amd, which sells better products in a large number of markets
- gpapilion 2y ago
  I think the main problem is the investment in gpus delayed the adoption of ddr5 based platforms for servers.

rasz 2y ago

Is it a good sign when CEO of Intel starts praying in public on twitter after earnings call? Asking for a friend. https://x.com/PGelsinger/status/1820129317122080977 https://x.com/PGelsinger/status/1820129317122080977 >@PGelsinger >“Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways” Proverbs 4:25-26

gregw2 2y ago
Tell your friend not to worry, it was a proverb and not a prayer and he didn't start after the earnings call, he's done it weekly for a while and nobody cared till it made a juicy headline to irritate you and make you curious and click.