Intel CEO's Deal-Making Under Fire

Intel CEO Lip-Bu Tan is facing increasing scrutiny regarding his involvement in potential deals that could personally benefit him. After reversing plans to spin off Intel Capital, Tan proposed Intel explore acquiring Rivos, an AI chip firm where he previously served as chairman. The Intel board ultimately rejected this proposal, citing insufficient AI strategy and conflicts of interest.

Despite the initial rejection, Tan later encouraged executives to develop a revised AI plan, which led to partnership discussions with Rivos. This company was eventually acquired by Meta at a significantly higher valuation than initially targeted. Tan's influence has also extended to pushing Intel to consider a potential deal with SambaNova, a U.S. AI chip startup where he holds the position of executive chairman, leading to ongoing governance discussions.

While concerns about his deal-making practices are mounting, Tan's extensive network has been instrumental in securing strategic partnerships and capital for Intel. His efforts have brought backing from major players like Nvidia and SoftBank, alongside support from the U.S. government. Analysts express varied outlooks on Intel's stock, with price targets suggesting potential downsides.