Gelsinger also discussed the future of AI applications, stating that running these from distant data centers is too costly for companies like Microsoft. He suggested that these applications will need to be run on local PCs, and for the economics to work, Microsoft would need to achieve a 100-to-1 reduction in the amount of data flowing between its data centers and PCs.
Key takeaways:
- Intel Chief Executive Pat Gelsinger has stated that the company has no plans to spin out its contract chip manufacturing business, Intel Foundry Services (IFS).
- IFS will start breaking out financials from the second quarter of next year, but Intel is not yet ready to list it as a separate entity.
- Gelsinger believes the internal foundry model is the right path for Intel in the current environment, and that there are distinct advantages to operating the chip design business and factory unit together.
- He also commented on the need for local PCs to run AI applications, stating that it would be too costly for companies like Microsoft to run these applications from far away data centers.