INFOGRAPHIC – Intel hopes to save $10 billion through a vast social plan to catch up on AI. On the other hand, Nvidia is breaking records by raking in $56 billion in revenue over the last two quarters.
As the euphoria of generative artificial intelligence (AI) is boosting tech companies, Intel announced at the beginning of August the largest social plan in its history (19,000 job cuts). Its objective? To reduce its workforce by 15% to achieve $10 billion in savings. The American group founded in 1968 has promised to be “more efficient” and to catch up in terms of innovation and AI.
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Once dominant, Intel has gradually lost ground. Challenged in manufacturing by Samsung and TSMC, its chip architecture is gradually being overtaken, particularly by ARM technology. As a result, its turnover has fallen from $79 billion to $54 billion between 2021 and 2023. Behind Nvidia ($61 billion).
Intel’s losses ($1.6 billion in the second quarter of 2024) have forced the company to cut back. While the new generation of chips is still scheduled for 2025 – with an agreement with Microsoft and US government aid – some factory projects, particularly in Germany, could be called into question. In the meantime, its presence in the Dow Jones index is threatened.
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Opposite, its compatriot Nvidia, created in 1993, is breaking records by raking in $56 billion in revenue over the last two quarters. Its market capitalization, once above $3,000 billion, is only surpassed by that of Apple and Microsoft. The result of an unchallenged domination of graphics processors, components essential for training AI. Instead of confining these to the video game market alone, Jensen Huang, the president of Nvidia, has invested billions to make them compatible with other uses that are very demanding in computing power. A strategy that contrasts with Intel’s inaction.
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