Do you regret it- Former Intel CEO reportedly offered $20 billion to buy Nvidia, but the board of directors didn’t support it

In a recent interview, we explored a fascinating piece of tech history that has significant implications for today’s landscape, particularly in light of recent developments in artificial intelligence.

Back in 2005, Paul Otellini, then the CEO of Intel, proposed an ambitious $20 billion acquisition of Nvidia, a company that has since skyrocketed in value due to the rising demand for AI technology. Today, Nvidia boasts a market cap exceeding $3 trillion, far outpacing Intel, which has faced numerous challenges in recent years. However, the board of directors at Intel rejected Otellini’s proposal, not fully grasping the transformative potential of AI at the time.

According to a report by The New York Times, while some Intel board members recognized Nvidia’s designs could play a significant role in data centers, their vision did not extend to the explosive growth of AI that we are witnessing today. There were also concerns about the integration of such a monumental acquisition, making Otellini ultimately retreat from the deal.

Instead, Intel’s board opted to support a different initiative led by current CEO Pat Gelsinger—the Larrabee GPU project. This endeavor was aimed at creating a new GPU using Intel’s x86 architecture, blending elements of CPUs and GPUs. However, despite the initial potential, the Larrabee project was eventually shelved, though Intel later made a return to the GPU space with its Xe and Arc efforts.

This incident is not Intel’s only missed opportunity in the realm of AI. In 2017 and 2018, Intel had a chance to invest in OpenAI, which was then a small non-profit research organization. However, Bob Swan, who was CEO at the time, turned down the investment, believing that AI was still far from reaching the mainstream market.

As we reflect on these pivotal moments, it’s clear that the decisions made at Intel have had lasting effects on the company’s trajectory and the broader tech landscape. What could have been different if those pivotal proposals had been embraced? The implications remain a topic of great interest and speculation.