https://www.reuters.com/markets/deals/intel-sells-stake-chip-designer-arm-holdings-2024-08-13/

Intel, which is cutting thousands of jobs as it struggles to stay relevant in the chip industry, sold its 1.18 million share stake in British chip firm Arm Holdings in the second quarter, a regulatory filing showed on Tuesday.

Intel would have raised about $146.7 million from the sale, based on the average price of Arm's stock between April and June, according to Reuters calculations.

The chipmaker said earlier this month that it would cut more than 15% of its workforce and suspend its dividend amid a pullback in spending on traditional data center semiconductors and a shift towards AI chips, where it lags rivals such as Nvidia.

So Intel is doubling down on AI chips despite the AI balloon popping? Legit business plan.

Intel has said it is focused on developing advanced AI chips and building out its for-hire manufacturing capabilities, as it aims to recoup the technological edge lost to Taiwan's TSMC, the world's largest contract chipmaker.

The push to energize that contracting foundry business under CEO Pat Gelsinger has increased Intel's costs and pressured profit margins, forcing it to seek cost cuts.

Intel and ARM both declined to comment on Tuesday when contacted by Reuters about the share sale.

"This looks to be consistent with the restructuring plan and the renewed focus on liquidity and efficiency that Gelsinger laid out from the last conference call," said Benchmark Co analyst Cody Acree.

huh?

Put things in perspective:

1. Intel wants to be leading techshit (who doesn't really, ?).

2. Intel wants to shift towards AIshit like N(word)vidya

3. Intel wants to shift away from catching up to TSMC's 2->1.4 nm node processes because they realized they can't catch up?

But barely an year ago Intel was forming up memo of understanding with ARM to boost its SOC

Intel Foundry and Arm Announce Multigeneration Collaboration on Leading-Edge SoC Design

https://www.intel.com/content/www/us/en/newsroom/news/intel-foundry-arm-announce-multigeneration-collaboration-leading-edge-soc-design.html

April 12, 2023 – Intel Foundry Services (IFS) and Arm today announced a multigeneration agreement to enable chip designers to build low-power compute system-on-chips (SoCs) on the Intel 18A process. The collaboration will focus on mobile SoC designs first, but allows for potential design expansion into automotive, Internet of Things (IoT), data center, aerospace and government applications. Arm® customers designing their next-generation mobile SoCs will benefit from leading-edge Intel 18A process technology, which delivers new breakthrough transistor technologies for improved power and performance, and from IFS's robust manufacturing footprint that includes U.S.- and EU-based capacity.

Early this year, Intel Foundry Services Head Stu Pann explained how Intel planned to build Arm chips, move more manufacturing to the U.S.

https://www.tomshardware.com/pc-components/cpus/intel-foundry-head-stu-pann-explains-companys-plan-to-build-arm-chips-move-more-manufacturing-to-the-us

Also, how the 5Nodes in 4Years was coming all according to plan and they were ready to take the edge away from TSMC

https://www.tomshardware.com/pc-components/cpus/intel-announces-new-roadmap-at-ifs-direct-connect-2024-new-14a-node-clearwater-forest-taped-in-five-nodes-in-four-years-remains-on-track

Just a week ago, Intel's new head of IFS (hired just 3 months ago) was talking enthusiastically about its 1.8nm chip

https://www.intel.com/content/www/us/en/newsroom/news/kevin-obuckley-talks-progress-intel-18a.html#gs.dlvpr9

By August 5th, techshit world was gushing like a hussy gussy about how Intel's 18a was going to blast through TSMC

https://pokde.net/system/pc/cpu/intel-panther-lake-power-on

Blah blah etc https://www.patentlyapple.com/2024/02/intel-is-set-to-release-the-worlds-first-14nm-chip-by-2027-and-18nm-in-2025-to-compete-with-tsmcs-2nm-that-apple-will-be.html

So what seems to be the problem?

Is it just because Intel seems to be building its own foundry and fab in US while Nvidia outsources all its production to different partners, so in the short run it's experiencing some negative profits...or is it stuck in limbo? Neither can it just let go of its foundry and embrace AI bubble nor can it let go of the AI lure.

again on Aug 6th it announced that its RibbonFET and 18A are on track and taking over TSMC by 2025. (EVERYTHING AS PLANNED)

https://www.intel.com/content/www/us/en/newsroom/artificial-intelligence.html?filters[-7300596454,-8111542043]#gs.dlwi0i

Yeah I can't find anything on Intel's press releases in AI section about GPUs.

All in all, I have no clue what is going on. Someone explain

!pirates !r-slurs !techshit