Intel's Missed Opportunity: The Unmade Investment in OpenAI

In a significant decision impacting its trajectory in artificial intelligence, Intel chose not to invest in OpenAI. The dialogue around this potential investment took place between 2017 and 2018, a period when AI technology was not as widely available as it is now. During this time, numerous options were explored regarding Intel's involvement with the company.

Over several months in 2017 and 2018, leaders from both organizations exchanged ideas, including the possibility of Intel acquiring a 15% share for $1 billion in cash, according to insiders. Furthermore, discussions included the notion of Intel attaining an additional 15% share of OpenAI if it produced hardware for the startup at cost price.

Bob Swan, the then-CEO of Intel, expressed skepticism regarding the readiness and profitability of the technology for consumer use. Consequently, the agreement never came to fruition, a decision that the company likely looks back on with regret. Moving forward to 2024, Intel is facing financial challenges, leading to reductions in workforce and product lines. The company is struggling to keep pace with its rivals in the realm of artificial intelligence but is actively seeking ways to improve its position.

Have you ever felt remorse for passing up an investment opportunity?