Intel missed multiple opportunities to acquire stakes in OpenAI, including a 30% investment.
Recent events have caused a huge setback for the technology giant resulting in the company slipping behind its competitors like Nvidia and Advanced Micro Devices (AMD).
In this day and age, when artificial intelligence is the driving force behind everything, the tech company’s initial decision to resist tapping into generative AI has presented it with a plethora of challenges.
Intel Misses OpenAI Deal
According to reports, the tech giant consistently turned down opportunities to acquire a large part in OpenAI, a company that was a pioneer in the field of generative artificial intelligence.
This story appears to have given the company a significant setback as evidenced by the fact that its stock price has been steadily decreasing over the course of this period of time.
As stated in a post that was published on X today by ‘Walter Bloomberg,’ The tech giant has been in negotiations with OpenAI for a large thirty percent investment in the artificial intelligence company.
However, according to sources cited by Reuters, no such transaction took place and the technology company failed to capitalize on the opportunity. Surprisingly, the funding discussions began almost seven years ago, when OpenAI was only beginning to take shape.
However, Bob Swan, the CEO at the time, cancelled the deal because he did not believe in the promise of generative AI. Over the course of several years, Sam Altman supported an artificial intelligence company in which the tech giant had multiple opportunities to invest.
These options included the possibility of acquiring a 15% ownership in exchange for $1 billion in cash and an extra 15% stake if the tech company delivered hardware to the AI startup at a cost price.
During this period, competitors of the corporation, such as Nvidia and AMD formerly known as gaming graphics processing units seized the opportunity to venture into the realm of artificial intelligence.
Nvidia (NVDA) & AMD To Take Lead?
Consequently, the current market meltdown, also known as “Black Monday,” led to a significant increase in the stocks of Nvidia and AMD. Notably, Nvidia (NVDA) has recently established itself as a leader in the development of artificial intelligence chips, capitalizing on the market.
In terms of market capitalization, the artificial intelligence chip manufacturer even reached the same level as Apple (AAPL), with the current value standing at $2.65 trillion.
In line with the ongoing development of artificial intelligence, the stock price of NVDA has increased by more than fifty percent over the past six months. But in the same time span, the price of AMD’s shares dropped by almost twenty percent.
Despite this, the value of INTC stock has decreased by approximately fifty percent over the last six months. The fact that the company entered the artificial intelligence market so late could be a contributing factor to the precipitous decline in its value.
Recent initiatives, on the other hand, demonstrate a paradigm shift in focus toward artificial intelligence. Panther Lake, an artificial intelligence-based personal computer processor was recently introduced by Intel.
Also, in the midst of the current excitement around the Olympics, the technology company disclosed an artificial intelligence platform that allows spectators to test their own strength and agility, further solidifying its position in the industry.
