Intel splits graphics chip division to speed up competition with Nvidia/AMD

According to Bloomberg, Intel is splitting its graphics chip division to accelerate market share from Nvidia and AMD.

"Discrete graphics and accelerated computing are key engines of Intel's growth," Intel said in a statement. Meanwhile, Raja Koduri, who is in charge of the Accelerated Computing Systems and Graphics Group, will return as Intel's chief architect.

The report said Intel's chief executive is pursuing an ambitious and costly plan to return the chipmaker to the forefront of the $580 billion industry. He is trying to revive Intel's leadership in manufacturing technology and squeeze into new markets such as graphics and outsourced manufacturing.

Additionally, Intel confirmed that it remains fully committed to its existing Arc consumer discrete graphics roadmap. That said, Intel is still interested in launching second-generation Battlemage and third-generation Celestial gaming graphics cards as planned, and these GPUs will be supported by Intel like the Alchemist series.

It is worth noting that Intel announced the news of the spin-off of the graphics card department, temporarily dispelling the outside world's speculation about its cancellation of the graphics chip department.

At the end of July this year, Jon Peddie, a well-known industry analyst, wrote that since Intel began announcing the performance of the graphics chip department in the first quarter of last year, the business has lost at least 2.1 billion US dollars. Peddie estimates the graphics chip unit's actual losses are higher, at about $3.5 billion, including investments in TSMC's Arc GPU, its discrete graphics card, that have so far had little effect.

Given that Pat Gelsinger has cut six businesses since taking charge of the company, such as selling unprofitable Optane and McAfee, and withdrawing the unprofitable drone business, Peddie speculates that Gelsinger may Kill the entire graphics chip division.