In 2005, the former CEO of Intel presented to the company’s board an idea to buy Nvidia for 20 billion dollars. However, the council rejected this profitable investment.
In 2005, the then CEO of Intel, Paul Otellini, presented to the management of the company the idea of buying Nvidia, which was then valued at 20 billion dollars. At the time, Nvidia was just starting to gain traction with graphics chip designs that promised innovations in computing power and data centers. Nevertheless, the acquisition proposal was rejected. Intel executives were reportedly concerned about the high price and risks, leading to a decision that experts today call a missed opportunity.
Since then, Nvidia has developed into one of the leaders in artificial intelligence and computing chips, with a market value of over $3.5 trillion. It is questionable whether Nvidia would get into such a strong position even as part of Intel. However, Intel, which has been trying to cope with the increasing competition in the field of chips in recent years, missed the opportunity to fundamentally strengthen its position and today is experiencing a difficult economic period.
On the other hand, history has shown that Intel has not always been successful in its strategies, as evidenced by the failures with the acquisitions of Nervana Systems, Movidius or Habana Labs. In this light, one can speculate whether Nvidia, as a part of Intel, would really reach the current level where it becomes a strong competitor even to Apple. Today, Nvidia benefits from its independent development and innovation, while Intel faces competition, especially from AMD and Qualcomm, which makes it difficult to position itself in the market.
Source: pctuning.cz
