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Intel CEO Pat Gelsinger was suddenly retired

LordOfChaos

LordOfChaos

Member
Wow. He said so many times he planned to see this through to the end of the turnaround to a foundry model, so I'd have taken it the plan was at minimum 2027. This does not sound like it was his choice then.

Obviously Intel hasn't been without its knocks during Pat's tenure but also that chip design and foundry lifecycles are 5+ years now, I thought he was doing a lot of the right things by reducing the financial manipulations like buybacks and dividends for now to focus on becoming a second place foundry right after TSMC by then, that's a far larger market potential.

I'm curious who's next in line after these interim CEOs. I remember the rumour that Intel tried to buy Nvidia for 20 billion dollars, what a miss not getting that eh, but that it was rejected because Jen's condition was being CEO of both lol...Maybe now he can be with the turntables...

www.theverge.com

Intel’s CEO is out after only three years

Another big change for Intel.
www.theverge.com www.theverge.com

Yet it looks to be opening 3-4% up, maybe the market had really turned on him more than I thought
 
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gothmog

gothmog

Gold Member
Well hopefully it's not because of his health. I met him once during his VMware days which was a highlight of my career. We geeked out about the 486 for awhile which was fun.

I suspect that either Intel is looking to sell or there was pushback on him not being as investor friendly as he could have been.
 
HogIsland

HogIsland

Member
gothmog said:
Well hopefully it's not because of his health. I met him once during his VMware days which was a highlight of my career. We geeked out about the 486 for awhile which was fun.

I suspect that either Intel is looking to sell or there was pushback on him not being as investor friendly as he could have been.
Click to expand...
cutting the dividend and then losing half the (already sagging) value overnight doesn't make investors happy
 
LordOfChaos

LordOfChaos

Member
RagnarokIV said:
Why does the thread title sound ominous and code speak like he was assassinated?

Did Pat Gelsinger make a mistake, and now it's time to erase that mistake?
Click to expand...
asdasdasdbb said:
"retired"
Click to expand...

"Was retired" was deliberate. This was clearly not his choice, after being very clear he intended to see it through to turnaround to a foundry business by 2027. One doesn't just choose to retire on a Monday morning all of a sudden after all that.
 
LordOfChaos

LordOfChaos

Member
Now's your chance to be CEO of Intel as was your condition for a merger, Jen-Hsun lol

finance.yahoo.com

Intel's former CEO reportedly wanted to buy Nvidia for $20 billion in 2005 — Nvidia is worth over $3 trillion today

A New York Times report says that in 2005, Intel CEO Paul Otellini wanted to buy Nvidia for $20 billion, which could have changed the course of tech history.
finance.yahoo.com finance.yahoo.com

www.engadget.com

CE-Oh no he didn't! Part LV: NVIDIA boss says "We're going to open a can of whoop-ass" on Intel

Looks like Intel's plans to enter the graphics space in a big way with its Nehalem and Larrabee lines strike NVIDIA CEO Jen Hsun-Huang as being rather foolish -- in a conference call with analysts today, Huang said Intel's integrated graphics offerings were "a joke," and that even a tenfold...
www.engadget.com www.engadget.com
 
A

asdasdasdbb

Member
LordOfChaos said:
"Was retired" was deliberate. This was clearly not his choice, after being very clear he intended to see it through to turnaround to a foundry business by 2027. One doesn't just choose to retire on a Monday morning all of a sudden after all that.
Click to expand...

Nah, something like this would have been in the works for awhile. They just chose today to announce it because they thought it would help boost the stock (even temporary)
 
LordOfChaos

LordOfChaos

Member
asdasdasdbb said:
Nah, something like this would have been in the works for awhile. They just chose today to announce it because they thought it would help boost the stock (even temporary)
Click to expand...

I don't agree. The market doesn't generally like decisions like this that weren't forecast well in advance. If this was the plan they would have been signalling Pat was retiring for a while, but that it was just a sudden press release without Pat saying anything about it doesn't sound like it's what he wanted.

That the stock is up is per chance what happened, but this little move isn't why they did this
 
A

asdasdasdbb

Member
LordOfChaos said:
I don't agree. The market doesn't generally like decisions like this that weren't forecast well in advance. If this was the plan they would have been signalling Pat was retiring for a while, but that it was just a sudden press release without Pat saying anything about it doesn't sound like it's what he wanted.

That the stock is up is per chance what happened, but this little move isn't why they did this
Click to expand...

Oh he was fired for sure. But if they wanted to bury the news they would have announced it last Wednesday.
 
LordOfChaos

LordOfChaos

Member
foamdino said:
My guess is that INTC are prepping to sell to someone and he wanted no part of it.
Click to expand...

Very possible, or at least clearing the CEO position for someone else to take over in a buyout-merger regardless of whether Pat was in for a buyout idea or not

His tonne of shares and granted options would still make him a killing in that scenario even if he's not CEO anymore
 
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StereoVsn

StereoVsn

Gold Member
foamdino said:
My guess is that INTC are prepping to sell to someone and he wanted no part of it.
Click to expand...
Or investors want to break up the company to “create value for shareholders”.

The whole thing is dumb AF. Of course there would be pain till foundry business can get up and running. And Intel should be able to provide work for the foundry.

Dividend and buy backs needed to go but activist investors didn’t like that.
 
LordOfChaos

LordOfChaos

Member
saintjules said:
'has' suddenly retired, not 'was' suddenly.

Grammar police here :messenger_tongue:
Click to expand...
That was a choice and not a mistake as mentioned above, as everything sounds like he was forcibly retired, not that he personally chose to retire

So he was retired. He didn't retire himself.
 
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Topher

Topher

Identifies as young
OverHeat said:
Leonidas Leonidas apply on this job stats!!!
Click to expand...

Dafuq?

VCyubUm.png


Ass of Can Whooping Ass of Can Whooping you gonna let this guy take your look?
 
LordOfChaos

LordOfChaos

Member
StereoVsn said:
Or investors want to break up the company to “create value for shareholders”.

The whole thing is dumb AF. Of course there would be pain till foundry business can get up and running. And Intel should be able to provide work for the foundry.

Dividend and buy backs needed to go but activist investors didn’t like that.
Click to expand...

I'm not sure they can spin off the fabs after the CHIPS act grant was just put through days ago?

They have many other nonessential businesses they can spin out though. I hope they don't cut GPUs somehow through all of this.
 
StereoVsn

StereoVsn

Gold Member
LordOfChaos said:
I'm not sure they can spin off the fabs after the CHIPS act grant was just put through days ago?

They have many other nonessential businesses they can spin out though. I hope they don't cut GPUs somehow through all of this.
Click to expand...
I can see them try. They don't give AF about US, longer term investment than maybe a quarter or anything else.
 
HogIsland

HogIsland

Member
LordOfChaos said:
I'm not sure they can spin off the fabs after the CHIPS act grant was just put through days ago?

They have many other nonessential businesses they can spin out though. I hope they don't cut GPUs somehow through all of this.
Click to expand...
No matter what happens with gaming GPU market share, I don't see how Intel can get by without a credible GPU solution. Between AI and mobile/handheld markets, Intel would be seriously hobbled without their own option. Debateably, there's an AI-acceleration solution that isn't 99% identical with GPUs, but as long as Nvidia are the AI industry leaders I'm skeptical.
 
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LordOfChaos

LordOfChaos

Member
HogIsland said:
No matter what happens with gaming GPU market share, I don't see how Intel can get by without a credible GPU solution. Between AI and mobile/handheld markets, Intel would be seriously hobbled without their own option. Debateably, there's an AI-acceleration solution that isn't 99% identical with GPUs, but as long as Nvidia are the AI industry leaders I'm skeptical.
Click to expand...
If anything Intel's going more towards GPUs for AI, Gaudi3 is a non-GPU and has been their solution but will be succeeded by a GPU in Falcon Shores
 
U

Unknown Soldier

Member
Firing their CEO now is a desperate move considering that installing a new figurehead won't save Intel now. They are in the final stages of a long decline that started more than a decade ago
 
E

Elios83

Member
It's absurd how such a giant has fallen in a relatively short period of time.
Their inability to compete with TSMC dragged on for too long and ended up putting at a disadvantage their own processors.
Plus the management lived under the delusion of their own past glory thinking that nothing would ever challenge the traditional x86 CPUs business.

Quite frankly I don't see a simple way out.
This is a case where the government will have to decide if they're too big to fail and pour a lot of money to try to save them.
Or the company might get fractured and sold.
 
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M

Mayar

Member
"suddenly retired"???
Intel has such big financial problems that I am surprised that this did not happen earlier. And now after the deal to sell the company to ARM stoped, I can't even imagine how they are going to get out of this financial hole, as far as I remember their external debt already exceeds $50 Billion USD.
 
winjer

winjer

Gold Member
LordOfChaos said:
I'm not sure they can spin off the fabs after the CHIPS act grant was just put through days ago?

They have many other nonessential businesses they can spin out though. I hope they don't cut GPUs somehow through all of this.
Click to expand...

They can't.
Part of the deal to get those 8.7B from the chips act is that Intel must keep their foundries.
 
LavitzSlambert

LavitzSlambert

Member
Not good news, unless you'd consider the likelihood of Intel being split up and sold off to be good news. Gelsinger was a net positive for the company, without him see it going back to its old ways (how it got here to begin with).
 
Chiggs

Chiggs

Gold Member
Speculation: he quit because the CHIPS cash he was banking on to bail his company out could no longer bail the company out since the language was modified to prevent Pat and crew from fleecing tax payers. See below:

www.theregister.com

Intel must control its foundry under CHIPS Act cash deal

That will limit Chipzilla's ability to cash in and bail itself out
www.theregister.com www.theregister.com

Since fleecing taxpayers was the only plan Pat really had, the only other option was retirement.

DenchDeckard said:
This is crazy!

Is intel as we know it, done?
Click to expand...

Yes, and a few of us have been saying it for close to two years now. I am one of them.

Anyone who argued, in bad faith, against my posts in the past can line up to kiss my ass twice. I hope you bastards didn't convince anyone to buy Intel stock at "such a value."
 
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Mistake

Mistake

Member
Everything I've been reading about intel is a bunch of empty promises and grand gestures, and yet their stock has been plummeting for several years. I think one of the heads of TSMC is right, they don't have a long term vision that aligns with current day issues. Like kodak trying to sell film
 
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U

Unknown Soldier

Member
Elios83 said:
It's absurd how such a giant has fallen in a relatively short period of time.
Their inability to compete with TSMC dragged on for too long and ended up putting at a disadvantage their own processors.
Plus the management lived under the delusion of their own past glory thinking that nothing would ever challenge the traditional x86 CPUs business.

Quite frankly I don't see a simple way out.
This is a case where the government will have to decide if they're too big to fail and pour a lot of money to try to save them.
Or the company might get fractured and sold.
Click to expand...
It wasn't a sudden fall, it was just more than a decade of slowly declining and at some point everyone notices all at once when you can't hide it anymore

Intel's fall was already determined many years ago when they decided instead of using EUV like everyone else they would go their own way and try to develop their own lithography technique
 
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