In order to better compete with Nvidia and Advanced Micro Devices, Intel said on Wednesday that it is dividing its graphic chips unit into two.
According to the firm, accelerated computing teams will join Intel's data centre and artificial intelligence (AI) businesses, while the consumer graphics unit will be united with the client computing department, which develops processors for personal PCs.
The decision was made as Intel increased its focus on accelerated computing, a booming market that is dominated by Nvidia as the usage of AI grows.
According to Wedbush Securities analyst Matthew Bryson, "I don't think it changes much (if anything) other than aligning the products with the appropriate sales teams they fit with instead of having them as a standalone section."
Raja Koduri, who oversaw the division that handled graphic chips, will take over as the company's chief architect and direct its long-term approach to technology and chip design.
Koduri joined Intel in 2017. Previously, he directed graphics technology initiatives at AMD and iPhone manufacturer Apple.
It was announced earlier this month that Intel has changed its mind about establishing a chip facility in the eastern German city of Magdeburg in the first half of 2023. According to local daily Volksstimme, the chip industry titan wants additional government funding.
The facility is essential to German and European Union aspirations to increase domestic production and increase the resilience of the continent after the COVID-19 epidemic and Russia's invasion of Ukraine showed the dangers of extensive, global supply chains.
However, the publication said that the US company's initial predictions had been off due to rising energy and raw material prices. The report stated that pricing were now closer to EUR 20 billion (approximately Rs 1,76,000 crore), as opposed to Intel's initial estimate of expenses of EUR 17 billion (USD 18 billion, roughly Rs 1,48,000 crore).
