Intel CEO Lip-Bu Tan sent a ‘we are coming’ kinda message to Nvidia CEO Jensen Huang this week. Lip-Bu Tan announced that Intel plans to build graphics processing units (GPUs), the category of chip popularized by Nvidia. “I just hired the chief GPU architect, and he’s very good. I’m very delighted he joined me,” Tan said, claiming that it took some persuading. Demers was at Qualcomm for more than 13 years. Graphics Processing Units (GPUs) are the chips, made by the likes of Nvidia and Advanced Micro Devices (AMD), power large language models and have seen demand skyrocket as companies race to build out artificial intelligence infrastructure and data centers.At the recent Cisco AI Summit, Intel CEO Lip-Bu Tan announced that the company will start producing graphics processing units (GPUs). These are more specialized processors, compared to the CPUs Intel traditionally produces, and are used for gaming and tasks like training artificial intelligence models. While Nvidia per se didn’t invent the GPU, these specific kind of AI chips have played a large role in the company’s success. Intel has traditionally produced CPUs, processors with a limited number of cores, making them best suited for serial computing tasks. GPUs, such as those produced by Nvidia, have thousands of smaller cores and are used for parallel computing tasks, such as AI and high-performance computing.In an interview with Reuters on the sidelines of the Summit, Tan said the GPU effort will target data centers. “It’s tied in with the data center,” Tan told Reuters. “We’re working with customers, and will then define what the customer needs.” Over the past few years, American chipmaker has fallen behind major semiconductor players that have seen a boost from the AI data center buildout.

Intel hires chief GPU architect

In January this year, Qualcomm executive Eric Demmers joined Intel. “I’m happy to share that I’m starting a new position as SVP, GPU architecture at Intel Corporation!,” Demmers wrote on LinkedIn. Demmers will report to Kevork Kechichian, the executive vice president and general manager of Intel’s data center group.While Intel has been working to turn around its ailing foundry business in recent years, earlier this month, Intel CFO David Zinsner admitted that the company misjudged demand for data center CPUs and, as a result, was expecting to see a product shortage hit its “lowest level” in Q1, before improving in second quarter and beyond.Incidentally, Nvidia is a prospective customer for Intel’s factories. The company is also one of the top shareholders in Intel after a $5 billion investment last year. Intel and Nvidia agreed to work together to integrate Intel’s CPUs with Nvidia’s AI chips in Nvidia systems. The Trump government’s stake has increased by $14 billion since its deal with Intel was agreed to in August 2025. Nvidia’s stake has grown by more than $6 billion since its investment the following month.

Intel CEO on chip crisis

Talking of memory chip crisis, Intel CEO said that the computer industry’s memory-chip shortage is likely to persist for at least two years. “There’s no relief as far as I know,” he said. Tan said that he spoke to two of the key players in memory, who told him, “There’s no relief until 2028.”A massive expansion of artificial intelligence infrastructure has fueled demand for memory chips, decreasing the supply available to traditional computers and smartphones. That’s bringing shortages and price hikes — and potentially hurting customers’ appetite for the products.Intel is the largest maker of processors for personal computers, which rely on memory to store and manage data. The top memory manufacturers are Samsung Electronics Co., SK Hynix Inc. and Micron Technology Inc.