Every major player has its own network group, but Intel plans to get rid of it...
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- The business is unprofitable
- The products are not leadership
- The company is bleeding red ink so, no way to give that team any more rope.
Nvidia CEO insisted the NEX spinoff as part of the deal.
Spin out as a separate company but any new capital coming in? Who will be CEO?
@fd It would be so very Intel to divest from Edge just before the market flips from training in data centers to deployment of inference models.
Yeah, get rid of networking but keep IOTG?
Networking group was a derivative group, not cutting edge. It will probably still exist in some form, but not as it was - there are much more efficient ways of doing the work.
Lots of good reasons to do so.
1 - sharpen focus of the company; get out of businesses lacking leadership
2 - shed opex and headcount
3 - shed businesses with low (or negative) gross margins
4 - add cash to the coffers
I suspect there are many other businesses that meet the above criteria, and I suspect exec team will retain some for strategic reasons. Perhaps networking is not strategic enough.
Or, they use this as a reset for that unit. Get rid of it and start anew with a much smaller, more capable team.
Should they do the same in graphics, esp. with the NVDA relationship?