Intel CEO Pat Gelsinger has officially retired after over 40 years at the company, stepping down from his role and the board of directors as of December 1, 2024. According to a Bloomberg report, Gelsinger’s departure followed a meeting with Intel’s board to discuss the company’s ongoing efforts to close the gap with Nvidia and regain market share. During this meeting, Gelsinger was presented with the option to retire or face removal, and he chose to announce his retirement.
Gelsinger rejoined Intel as CEO in February 2021, taking over from Bob Swan in an attempt to steer the struggling chipmaker back on track. However, his tenure has been marked by a series of setbacks. Intel has notably failed to capitalize on the surge in demand for AI chips, which has significantly boosted Nvidia’s success. The company has also faced delays in rolling out new technologies, dealt with ongoing issues related to CPU instability, and missed out on becoming Microsoft’s launch partner for AI-powered PCs.
Rumors had circulated earlier this year that Qualcomm might be interested in acquiring Intel, but those discussions now seem to have lost momentum. When questioned about the potential acquisition on November 20, Qualcomm CEO Cristiano Amon clarified that the company has not identified any major acquisitions as essential to its future plans.
Intel’s recent product launches have also faced challenges. The company’s Core Ultra 9 200S-series processors, which were expected to make a splash, were met with a lackluster reception. Robert Hallock, Intel’s VP and GM of AI and technical marketing, acknowledged that the launch “didn’t go as planned.” Additionally, reports about issues with Intel’s upcoming 18A chipmaking process further dented investor and customer confidence.
In response to these difficulties, Gelsinger made a significant announcement in September, stating that Intel would spin off its chipmaking operations into a separate entity and pause the construction of semiconductor factories in Poland and Germany. This move came shortly after Intel secured nearly $8 billion in funding from the CHIPS and Science Act to support the construction of new factories in the U.S., including locations in Arizona, New Mexico, Ohio, and Oregon.
Despite these efforts, Intel has struggled to regain its former stature. During a 2022 interview with Decoder, Gelsinger admitted that the company had a dual challenge: rebuilding both its internal culture and its customers’ confidence. Unfortunately, Intel’s performance has continued to disappoint. In early 2024, the company revealed that its chipmaking division suffered $7 billion in operating losses in 2023, prompting the decision to lay off over 15,000 workers as part of a broader strategy to cut $10 billion in costs.
With Gelsinger’s departure, the company is now in a period of transition. Intel’s chief financial officer, David Zinsner, and Intel Products CEO, Michelle Johnston Holthaus, will temporarily step in as co-CEOs while the board searches for a permanent successor. Frank Yeary, an independent chair on Intel’s board, will assume the role of interim executive chair during this leadership transition.
In his resignation statement, Gelsinger reflected on his long career at Intel, saying, “Leading Intel has been the honor of my lifetime. This group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague. Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together. It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.”
Gelsinger’s retirement marks the end of a significant era at Intel, with the company now faced with the task of navigating its future under new leadership. While Gelsinger made efforts to guide Intel through a period of transition, the company’s struggles highlight the challenges facing legacy chipmakers in an industry that is increasingly driven by rapidly evolving technologies like AI and semiconductors.