Intel wants to build ‘everybody’s AI chips,’ CEO says, as company plays catch-up with rivals
Intel wants to regain its position as the world’s leading chipmaker, CEO Pat Gelsinger said, after being overtaken by rivals TSMC and Samsung in recent years.
“We want to build everybody’s chips, everybody’s AI chips. We want them to be built leveraging the U.S. factories,” Gelsinger told CNBC on the sidelines of the Computex tech conference in Taipei on Tuesday.
Intel seeks to boost its struggling foundry business, which posted a wider operating loss of $7 billion in 2023 versus the prior year. It is currently not in the top six foundries by revenue, according to a Counterpoint Research report on May 22.
The company was the world’s largest chipmaker until 2017 when Samsung Electronics surpassed it in revenue. Taiwan Semiconductor Manufacturing Company reportedly overtook Samsung in 2023 to become the world’s largest foundry by revenue.
“The first piece is to get back to leadership, because a lot of the losses are associated with having uncompetitive process technology,” said Gelsinger.
As much as $8.5 billion in CHIPS and Science Act funding from the Biden administration, with another potential $11 billion in offing, is expected to help Intel advance its semiconductor manufacturing and research and development.
“The capital is critical. And what we said is that we have to have economic competitiveness if we’re going to build these factories in the U.S. and that’s what the chips Act has done. It’s created a level playing field if I were building a factory in Asia versus U.S.,” Gelsinger said.
Intel, which designs chips as well, also wants to catch up with Nvidia and AMD after having largely been on the sidelines of the AI frenzy which saw tech giants Meta, Microsoft and Google buying up as many Nvidia chips as possible.
During Computex tech conference in Taipei on Tuesday, Gelsinger unveiled the new Xeon 6 processor for data centers with improved performance and power-efficiency compared to its predecessor.
“Xeon 6 was a big step forward in our competitiveness to not only hold on to our market, but regain some of those market share opportunities that we’ve lost,” said Gelsinger.
“And as we get through that and get back to [chip manufacturing] process leadership, we will also have much better profitability, as well,” he added.
China remains a big market
China remains an essential market for most U.S. chipmakers including Intel despite Washington’s efforts to restrict chip sales to the country and amid Beijing’s push to reduce foreign reliance in the semiconductor sector.
“China is a big market for Intel today, and one that we’re investing in to be a big market for Intel tomorrow,” said Gelsinger.
“And as I would like to say, navigating carefully, build products, make sure that we’re obeying the laws of both countries, but also then build products that are compelling.”
U.S. chip giants Intel, Broadcom, Qualcomm and Marvell Technology all generate more revenue from China compared with the U.S., data from S&P Global compiled in March showed.
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
Spencer Platt | Getty Images
Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Technology
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OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.
Justin Sullivan | Getty Images News | Getty Images
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.
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