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Intel's interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, provided candid insights into the company's current challenges and future strategies during their first public appearance together. They highlighted the need for improved execution in Intel's product lines, particularly in AI accelerator chips and server CPUs, while acknowledging increased competition in the PC market. The executives also left open the possibility of restructuring Intel's operations, including the potential separation of its foundry business.
Holthaus expressed confidence in Intel's PC market strategy but admitted that the company has been slow to adapt to the performance and power efficiency of Arm-based processors. She noted high return rates for Arm PCs due to software compatibility issues, emphasizing the need for Intel to innovate and regain market share from competitors like AMD. The discussion also touched on the future of Intel's Gaudi chips, with Holthaus indicating that while the upcoming Falcon Shores chip won't be revolutionary, it represents a necessary step forward.
• Intel's co-CEOs emphasize the need for improved execution in AI chip strategies.
• High return rates for Arm PCs highlight software compatibility challenges.
Intel's Gaudi chips are designed for AI applications but face market challenges.
Issues with software compatibility are causing high return rates for Arm-based PCs.
Intel acknowledges it was late in developing chips that balance performance and energy efficiency.
Intel is focusing on improving its AI accelerator chip strategy to regain market competitiveness.
Qualcomm's Arm-based processors are facing return issues due to software compatibility, impacting market dynamics.
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