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How chip giant Intel spurned OpenAI and fell behind the times
SAN FRANCISCO — For US chip giant Intel, the darling of the computer age before it fell on harder times in the AI era, things might have been quite different. About seven years ago, the company had the chance to buy a stake in OpenAI, then a fledgli
About seven years ago, the company had the chance to buy a stake in OpenAI, then a fledgling non-profit research organisation working in a little-known field called generative artificial intelligence, four people with direct knowledge of those discussions told Reuters.
Over several months in 2017 and 2018, executives at the two companies discussed various options, including Intel buying a 15 per cent stake for US$1 billion (S$1.32 billion) in cash, three of the people said. They also discussed Intel taking an additional 15 per cent stake in OpenAI if it made hardware for the startup at cost price, two people said.
Intel ultimately decided against a deal, partly because then-CEO Bob Swan did not think generative AI models would make it to market in the near future and thus repay the chipmaker's investment, according to three of the sources, who all requested anonymity to discuss confidential matters.
