Intel's AI Reshuffle: CEO Steps In as CTO Defects to OpenAI

Intel just made a big move—and it signals some real tension in the AI chip wars.

The headline: CEO Lip-Bu Tan is now directly running Intel’s AI and Advanced Technologies divisions after CTO Sachin Katti jumped ship to OpenAI. Katti’s joining OpenAI’s infrastructure team to build compute systems for AGI research.

Why it matters: This isn’t just a routine exec shuffle. Katti spent 15 years as a Stanford professor specializing in networking and chip architecture—exactly the expertise OpenAI needs to scale its compute. His departure screams that top chip talent is getting poached by AI labs willing to pay whatever it takes.

Meanwhile, Intel’s playing defense hard. The company is reshuffling leadership, recruiting from Arm, and flattening its org structure—classic turnaround moves. Year-to-date, INTC stock is up 91.77%, so investors are betting Tan’s restructuring will work.

The real challenge: Intel’s getting squeezed from every angle. NVIDIA dominates high-performance AI chips, AMD’s closing in, and cloud giants are building custom silicon. Tan taking the wheel on AI is a signal Intel’s making it a top-three priority.

Stock closed Monday at $38.45, up 0.84% on the news. But the three-year return is only 33.99%—not exactly crushing it compared to broader market gains.