Intel CEO Lip-Bu Tan Reorganizes Leadership, Elevates AI Chief to CTO Role

Intel has announced significant leadership changes aimed at streamlining its operations and accelerating its AI efforts. The restructuring is the first major move under the company’s new CEO, Lip-Bu Tan, who took the helm last month. Tan's goal is to transform Intel into a leaner, more innovative organization, addressing years of manufacturing and product challenges and reclaiming its competitive edge in the tech industry. According to a memo from Tan, the company’s data center and AI chip group, as well as its personal-computer chip group, will now report directly to him, bypassing a previous layer of oversight from Michelle Johnston Holthaus, who remains CEO of Intel products. Holthaus’s role will evolve to include new areas, but detailed plans are yet to be announced. Tan emphasized his intent to work closely with engineering and product teams to identify and address the company’s needs. A key appointment in this restructuring is the promotion of Sachin Katti, previously the networking chip chief, to the role of Chief Technology Officer and Chief AI Officer. Katti, who also holds a professorship at Stanford University, will lead the development of Intel’s AI strategy and product roadmap, taking over from Greg Lavender, who is retiring. Katti’s expanded role includes oversight of Intel Labs and relationships with startups and the developer ecosystem. The shakeup follows a period of turmoil for Intel, including the departure of its previous CEO due to disagreements over the company’s direction. One of Intel’s most pressing challenges is competing with Nvidia, which has become the dominant player in the AI chip market. Despite acquiring several AI startups, Intel lacked a coherent strategy and recently shelved its Falcon Shores chip, aimed at rivaling Nvidia’s offerings. Katti’s responsibility to develop a new AI strategy is crucial in this context. Tan also highlighted the need for a new head of government affairs, emphasizing the critical importance of managing the company’s relationships with governments in the U.S. and abroad. This role is particularly significant given the complex global environment, including tariffs imposed on China, where Tan’s venture capital fund has extensive investments. The company is currently searching for a successor to fill this position, which was vacated after the U.S. elections by Bruce Andrews, a former Commerce Department official under President Barack Obama. In recent years, Intel's executive structure had become heavily business-unit focused, with technical leaders several layers below the CEO. Tan’s memo indicates that this is changing, with Rob Bruckner, Mike Hurley, and Lisa Pearce, three longtime technical executives, now reporting directly to him. This move underscores Intel's renewed focus on engineering and technology, enabling faster decision-making and better resource allocation. Tan acknowledged the organizational complexity and bureaucratic processes that have hindered Intel’s innovation. "It’s clear to me that these issues have been slowly suffocating the culture of innovation we need to win," he wrote in the memo. He emphasized the importance of breaking down silos within the company to improve execution and foster a more agile and efficient environment. The restructuring is designed to give Tan better visibility into the company’s technical and strategic needs, allowing him to make decisions that can help Intel catch up in the highly competitive AI market. By placing key technical leaders closer to the top, Intel aims to enhance collaboration and ensure that new ideas receive the attention and resources they require. Industry insiders have praised Tan's decision to flatten Intel's leadership structure, seeing it as a positive step toward regaining the company’s market position. They believe that closer interaction between leadership and technical teams will spur innovation and speed up product development. Intel, once a pioneer in the tech industry, has faced increasing pressure from competitors and technological shifts. With Tan’s changes, the company is signaling its commitment to reinvigorating its technological prowess and maintaining its relevance in a rapidly evolving market. Lip-Bu Tan, a veteran in the semiconductor and venture capital industries, brings a wealth of experience to his new role at Intel. Before joining Intel, he led Walden International, a prominent venture capital firm, and has a track record of fostering innovation and growth in tech startups. His leadership is seen as a strategic move to revitalize Intel’s innovation culture and drive the company toward future success.