Hindsight is 20/20, and all that, but a new report at Reuters indicates that the Intel of 2024 could have been a very different company if it hadn’t passed on the opportunity to invest in OpenAI. Citing “four people with direct knowledge,” Intel discussed acquiring a 15% stake in OpenAI in 2017 and 2018.
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Discussions and talks took place over several months, with the report stating that the then-CEO Bob Swan didn’t see generative AI as becoming a significant thing in the market anytime soon, so it wouldn’t be able to recoup its investment. That investment is rumored to have been worth $1 billion for 15% of the company.
Recent reports state that OpenAI is worth around $80 billion, so you can guess how this decision to turn down OpenAI is being viewed today.
It gets even juicier as part of the deal (or discussion) included Intel making hardware for the then-startup at cost price for an additional 15% stake, bringing Intel’s potential alternate universe share in OpenAI up to 30%. This deal predates Microsoft’s $1 billion investment in OpenAI in 2019, and if it had gone through, it probably would have meant Microsoft would have been late to the party.
Reuters notes that Intel’s data center team also opposed the deal because it didn’t want to create products for OpenAI at cost. Reuters does add that it reached out to Intel and OpenAI to comment on the report, but all parties declined or did not respond.
Outside of this deal, Intel’s reluctance or delay in entering the AI market with its chips is widely viewed as a misstep for a company that was once the undisputed global leader in high-performance computing.