Former Intel CEO says the chipmaker went off the rails ‘when it started to be run by business people’
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Former Intel CEO Pat Gelsinger called out his predecessors for their role in the chipmaker’s decline.
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Gelsinger questioned why Intel was run by executives who did not have a strong technical background.
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Intel’s position recovered last year after the United States took a nearly 10% stake in the company.
Former Intel CEO Pat Gelsinger says he had a premonition when the chipmaker’s collapse began.
“I think one of the key things is that when you look at the big tech companies today, they are extremely technical,” Gelsinger told “All-In Podcast” co-host Jason Calacanis during an interview recorded at the Raise Summit in Paris.
Gelsinger said that when he returns to Intel in 2021, he “is the first technical leader to be associated with Intel in 15 years.” The former Intel chief said his predecessors had the wrong track record.
“When you’re making these tough technical decisions that affect billions of dollars, you don’t do it through a spreadsheet,” Gelsinger said. “This is a terrible investment unless technology trends make it the right investment.”
Paul Otellini, who led Intel from 2005 to 2013, was the first non-engineer from the business world to lead the company. Brian Krzanich, who has a degree in chemistry, replaced Otellini after taking a job at a chip factory in New Mexico and later spent decades working on manufacturing problems. Bob Swan, the last executive before Gelsinger took over, spent decades in senior financial positions, including as CFO of eBay and HP Enterprise Services.
Gelsinger also took issue with the amount of money Intel spent on dividends and shareholder buybacks before taking over. According to Intel’s financial records, the company returned approximately $79 billion to shareholders through share buybacks and dividends from 2015 to 2020.
“What wouldn’t I do if there was another hundred billion dollars on the balance sheet?” he said.
Once a dominant player, Intel has declined with the rise of companies like TSMC and others. SAMSUNG. As Reuters recounts, Intel’s leaders made key decisions that led the company to give way to once-smaller rivals like ARM and Advanced Micro Devices (AMD).
Intel’s situation has improved significantly in the last year. President Donald TrumpControversial decision by the US government approximately 10% stake in the company. Nvidia, one of Intel’s other rivals that left the chip maker behind, purchased Intel shares worth approximately $5 billion in a deal announced last September, giving the world’s largest company in terms of market value a approximately 4% stake in Intel.
