The chip giant’s CEO was forced to resign! – Intel CEO Pat Gelsinger’s plan was deemed unrealistic and he was forced to resign…
Intel is struggling not to be left behind against competitors like Nvidia in the age of artificial intelligence, but while Nvidia’s market value reached 3 trillion dollars with the recent artificial intelligence boom, Intel’s value fell below 100 billion dollars. This led to Intel’s plans to reduce capital expenditures by 17 percent to $21.5 billion in 2025.
The company’s CEO, Pat Gelsinger, and key executives had pitched for cutting unnecessary expenses and revamping capital spending as they sought to revive the fortunes of the once-dominant chip maker. However, the Intel board of directors was not convinced enough about this turnaround plan, resulting in Gelsinger having to resign.
TWO INTERIM MANAGERS ARE IN ACTION
Intel CEO Pat Gelsinger left his position less than four years after assuming leadership of the company. Gelsinger resigned on December 1, 2024, and handed over control, leaving two interim managers in his place.
Gelsinger’s resignation came following the board meeting held last week. At the meeting, the board concluded that Gelsinger’s costly and ambitious plans to transform Intel were not moving quickly enough. He stated that the board of directors gave Gelsinger the option of either retiring or being fired, but Gelsinger chose to resign, Reuters reported.
Intel CFO David Zinsner and Intel Products CEO Michelle Johnston Holthaus have been hired on an interim basis. The board formed a search committee to find a permanent CEO to replace Gelsinger.
IT WAS 30 TIMES SMALLER
In 2021, Gelsinger took over a company not without its attendant challenges. Intel, which had recently set lofty targets for manufacturing and AI capabilities among major customers, ultimately lost or canceled contracts under its watch and failed to deliver promised goods. He made optimistic claims about possible AI chip deals that beat Intel’s own forecasts, leading the company to scrap a recent revenue forecast about a month ago.
Gelsinger’s departure comes ahead of the completion of the company’s four-year roadmap to regain its leadership in producing the fastest and smallest computer chips, a crown it lost to Taiwan Semiconductor Manufacturing Co, which makes chips for Intel rivals such as Nvidia.
Intel, which was founded in 1968 and has been the basis of Silicon Valley’s global dominance in chips for decades, has fallen to a market value 30 times smaller than Nvidia, its biggest rival and leader in artificial intelligence chips under Pat Gelsinger.
HIS FUTURE AT DOW JONES WAS IN RISK
Intel, one of the US microchip manufacturer giants, is at risk of losing its place in the Dow Jones Industrial Average with a 60 percent drop in share prices. The company, which missed the AI boom and suffered huge losses, is struggling to rebuild its reputation. It was stated that one of its biggest competitors, chip manufacturer Nvidia, which gained great value by not missing the train in the artificial intelligence boom, could replace Intel.