Intel’s Former AI Chief Departure Was a Massive Blow, but CEO Lip Bu Tan Now Plans to Take Direct Control
Intel’s AI division has experienced a turbulent few weeks following the unexpected departure of Sachin Katti, the company’s former AI chief. Katti’s move to OpenAI created a significant disruption within Intel, since he had been the primary leader driving the company’s AI strategy and public progress. His exit raised widespread concerns about Intel’s ability to maintain its momentum in the rapidly expanding AI market.
A newly surfaced internal memo reported by CRN reveals that Intel Chief Executive Officer Lip Bu Tan has acknowledged the challenges caused by these recent leadership shifts. More importantly, Tan has announced that he will assume direct oversight of Intel’s AI group in order to stabilize its strategy and strengthen its roadmap.
“I recognize that these teams have experienced considerable change in the recent months. That is why I will be working directly with the leadership teams to refine our AI strategy and ensure consistent execution of our advanced technology roadmap,” Tan wrote in the memo.
Intel’s AI division has undergone significant restructuring during the past month, including the departure of two high level executives that had been positioned to guide the company’s long term strategy. This triggered concerns about whether the firm could continue aligning its hardware and software initiatives within the accelerated AI landscape. With Tan reducing layers of management and consolidating decision making at the top, Intel is shifting toward a more centralized leadership model in this critical business segment.
Some analysts view the reduction in hierarchy as a risk, since AI development typically benefits from strong specialized leadership. Others see this as a positive signal, citing Tan’s respected track record with corporate turnarounds, including the revitalization of Cadence. His direct involvement indicates that Intel intends to move aggressively to stay competitive in an industry dominated by NVIDIA, AMD, and a growing roster of custom silicon developers.
Sachin Katti had played a major role in Intel’s renewed AI focus. He led initiatives such as Crescent Island, an AI accelerator designed as part of a more predictable annual product cadence. Under his direction, Intel had begun to show signs of a unified AI strategy that could challenge competitors. His departure, however, created uncertainty about the continuity of that vision.
With Lip Bu Tan now personally guiding the AI division, all eyes will be on Intel’s next moves. Investors and industry watchers expect the company to deliver updated plans for its AI silicon, software ecosystem, and data center roadmap in the months ahead. Whether this shift in leadership will strengthen Intel or create additional instability remains to be seen, but the decision signals that Intel recognizes the urgency of the current competitive environment.
Do you believe CEO Lip Bu Tan’s decision to take direct control of the AI division will help Intel regain momentum, or does the loss of leadership create deeper challenges? Share your thoughts below.
