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It is not the first choice of revenue of course, they and everyone would like to be Nvidia and pick and choose the customers standing patiently in line outside

It is not the first choice of revenue of course, they and everyone would like to be Nvidia and pick and choose the customers standing patiently in line outside the door. However in tough times, having the culture to change and deal with customers or use cases you wouldn't prefer to survive is a good sign. AMD during the bulldozer era, had many deals they didn't like or barely made money just to survive, it paid off with Ryzen, it can happen to Intel as well. Good to see Intel branching out and trying new things to turn the ship around.

pmkary 2y ago
Wise
vagrantJin 2y ago
I did not know intel was so short of cash it needs military money to stay afloat.
- timnetworks 2y ago
  losing Apple's desktop and laptop business ended up being quite a loss for them
  - resters 2y ago
    Intel could't have done it profitably and chose to lose the business. Intel has been a cash cow business for a while, coasting on its early wins and doomed to be gradually surpassed. For shareholders seeking short and medium term value, this works out quite well.
- fasa99 2y ago
  It's not about the small time military money it's about the big ticket government bailout. If they have some hooks into the military then they have, what's the term, a "moral hazard" card to freely take risk, military dependency puts them at the top of the bailout list (which they kinda were already, now even moreso)
- joshvm 2y ago
  Their long term plan is to make money via foundry/fab orders, so it makes sense to see this. But otherwise their share price is currently rock bottom because they're pouring money into infrastructure development (plus late EUV adoption) and a lot of people are sceptical it'll pan out.
- manquer 2y ago
  They are not immediately short of actual cash per se, but they have been doing a lot of layoffs and pulling back on big ticket investments like the foundry they had planned in Germany, financial health is a top concern . they are also loosing revenue hard in multiple segments including their core high margin enterprise server chips and also not gaining foothold in others (mobile/lower power device or GPUs) They need fresh revenue really quickly to keep markets happy on share price which has really tanked this year, also to keep the supply chain healthy and talent motivated Any foundary business is always in need of cash, a leading edge foundary is $20-$30B outlay minimum these days , not many companies in the world are so flush they can easily spend $30B without sweating it
  - surfingdino 2y ago
    Seems like that facility they were supposed to build in Germany is going to be built in Poland.
- Qwertious 2y ago
  They're not short of cash, they're short of business throughput for their fab because it's uncompetitive next to TSMC, but a lot of their chip design business relies on integration with it so they'd lose a ton of money if they went fabless like AMD and switched to TSMC.
- avazhi 2y ago
  Intel is arguably on the cusp of death as the company that it was between, say, 2000-2013. https://www.economist.com/business/2024/09/12/intel-is-on-life-support-can-anything-save-it https://www.economist.com/business/2024/09/12/intel-is-on-li... It’s pretty nuts reading The Atlantic’s piece from 10 years ago and then seeing where the company is now. https://www.theatlantic.com/technology/archive/2013/05/paul-otellinis-intel-can-the-company-that-built-the-future-survive-it/275825/ https://www.theatlantic.com/technology/archive/2013/05/paul-...
jason-phillips 2y ago
This is nothing more than Intel joining the ranks of the other tbtf government contractors. That's how they plan to survive.
- horacemorace 2y ago
  It also increases the likelihood of a secure supply chain for mil components. Seems like a win-win.
  - roenxi 2y ago
    In the sense that any voluntary trade is a win-win for both parties, yes. But it is inglorious compared to where Intel was in, say, the early 2000s. It is a big change to look at market cap and see traders treating AMD as a big player, then Intel somewhere off in the also-ran territory. So much for their monopoly.
- georgeburdell 2y ago
  Intel has had the government as a customer for a long time. They even have a division for it (Intel Federal)
  - aurareturn 2y ago
    Did they manufacture military designs though? Or just sell Intel designs (with some modifications) to military?
    - Rinzler89 2y ago
      Intel was making 386 chips for the F-22 for a looking time after they became obsolete.
      - Melatonic 2y ago
        386 in the F22?! Why ? Such an old chip even considering the plane was in design for years no ?
coliveira 2y ago
This is not a good sign, it only means that Intel will survive from government handouts. If I ware a shareholder I would look for an exit.
- moneydang 2y ago
  [flagged]

pmkary 2y ago

Wise

vagrantJin 2y ago

I did not know intel was so short of cash it needs military money to stay afloat.

timnetworks 2y ago
losing Apple's desktop and laptop business ended up being quite a loss for them
- resters 2y ago
  Intel could't have done it profitably and chose to lose the business. Intel has been a cash cow business for a while, coasting on its early wins and doomed to be gradually surpassed. For shareholders seeking short and medium term value, this works out quite well.
fasa99 2y ago
It's not about the small time military money it's about the big ticket government bailout. If they have some hooks into the military then they have, what's the term, a "moral hazard" card to freely take risk, military dependency puts them at the top of the bailout list (which they kinda were already, now even moreso)
joshvm 2y ago
Their long term plan is to make money via foundry/fab orders, so it makes sense to see this. But otherwise their share price is currently rock bottom because they're pouring money into infrastructure development (plus late EUV adoption) and a lot of people are sceptical it'll pan out.
manquer 2y ago
They are not immediately short of actual cash per se, but they have been doing a lot of layoffs and pulling back on big ticket investments like the foundry they had planned in Germany, financial health is a top concern . they are also loosing revenue hard in multiple segments including their core high margin enterprise server chips and also not gaining foothold in others (mobile/lower power device or GPUs) They need fresh revenue really quickly to keep markets happy on share price which has really tanked this year, also to keep the supply chain healthy and talent motivated Any foundary business is always in need of cash, a leading edge foundary is $20-$30B outlay minimum these days , not many companies in the world are so flush they can easily spend $30B without sweating it
- surfingdino 2y ago
  Seems like that facility they were supposed to build in Germany is going to be built in Poland.
Qwertious 2y ago
They're not short of cash, they're short of business throughput for their fab because it's uncompetitive next to TSMC, but a lot of their chip design business relies on integration with it so they'd lose a ton of money if they went fabless like AMD and switched to TSMC.
avazhi 2y ago
Intel is arguably on the cusp of death as the company that it was between, say, 2000-2013. https://www.economist.com/business/2024/09/12/intel-is-on-life-support-can-anything-save-it https://www.economist.com/business/2024/09/12/intel-is-on-li... It’s pretty nuts reading The Atlantic’s piece from 10 years ago and then seeing where the company is now. https://www.theatlantic.com/technology/archive/2013/05/paul-otellinis-intel-can-the-company-that-built-the-future-survive-it/275825/ https://www.theatlantic.com/technology/archive/2013/05/paul-...

jason-phillips 2y ago

This is nothing more than Intel joining the ranks of the other tbtf government contractors. That's how they plan to survive.

horacemorace 2y ago
It also increases the likelihood of a secure supply chain for mil components. Seems like a win-win.
- roenxi 2y ago
  In the sense that any voluntary trade is a win-win for both parties, yes. But it is inglorious compared to where Intel was in, say, the early 2000s. It is a big change to look at market cap and see traders treating AMD as a big player, then Intel somewhere off in the also-ran territory. So much for their monopoly.
georgeburdell 2y ago
Intel has had the government as a customer for a long time. They even have a division for it (Intel Federal)
- aurareturn 2y ago
  Did they manufacture military designs though? Or just sell Intel designs (with some modifications) to military?
  - Rinzler89 2y ago
    Intel was making 386 chips for the F-22 for a looking time after they became obsolete.
    - Melatonic 2y ago
      386 in the F22?! Why ? Such an old chip even considering the plane was in design for years no ?

coliveira 2y ago

This is not a good sign, it only means that Intel will survive from government handouts. If I ware a shareholder I would look for an exit.

moneydang 2y ago
[flagged]