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In 2005, Intel's board rejected a $20 billion acquisition of Nvidia, which has since become a leader in AI chips, with a market value exceeding $3 trillion. Intel, once dominant in the chip industry, has seen its value drop below $100 billion and struggles to compete in the AI market. After the acquisition was declined, Intel pursued an internal graphics chip project, Larrabee, which failed. Despite attempts to enter the AI chip market through acquisitions, Intel's latest chip, Gaudi 3, is positioned as a lower-cost alternative, with CEO Gelsinger admitting they are far behind Nvidia.
In 2005, Intel's board rejected a $20 billion acquisition of Nvidia, which has since become a leader in AI chips, with a market value exceeding $3 trillion. Intel, once dominant in the chip industry, has seen its value drop below $100 billion and struggles to compete in the AI market. After the acquisition was declined, Intel pursued an internal graphics chip project, Larrabee, which failed. Despite attempts to enter the AI chip market through acquisitions, Intel's latest chip, Gaudi 3, is positioned as a lower-cost alternative, with CEO Gelsinger admitting they are far behind Nvidia.
•Nvidia is now valued at over $3 trillion, while Intel's value is below $100 billion.
•Intel's board cited poor integration history and high costs for the rejection.
•Intel pursued an internal project, Larrabee, which failed after four years.
•Intel's attempts to enter the AI market through acquisitions have not succeeded.
•CEO Gelsinger admits Intel is far behind Nvidia in highend AI systems.
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