Intel, once a Silicon Valley icon and dominant force in the tech industry, has fallen from grace under the leadership of Andy Grove and his successor Brian Krzanich. The company’s dominance was built on its ability to follow disruptive forces in the valley, but it failed to adapt to the smartphone and artificial intelligence revolutions.
After Mr. Grove’s departure, Intel missed the next wave of innovation, allowing rivals like Nvidia to overtake it in semiconductor manufacturing. Despite attempts at turnaround, led by Pat Gelsinger, the company struggled to regain its edge in chip production, particularly after a surge in demand for graphics processing units driven by artificial intelligence applications.
The latest blow came when Intel received $8.9 billion from the Trump administration as part of the CHIPS Act in exchange for a 10 percent stake in the business. The deal marks one of the largest U.S. government investments in a company since the 2008 financial crisis, highlighting the challenges faced by even the most established tech giants.
David Yoffie, a Harvard Business School professor who served on Intel’s board for nearly three decades, noted that Andy Grove feared government intervention and complacency. “He feared incrementalism,” Mr. Yoffie said, echoing his concerns about the company’s decline. The sale of a stake to the Trump administration may be seen as a recognition of these fears.
Intel’s journey serves as a reminder that even the mightiest companies can fall from grace, highlighting the importance of innovation and adaptability in the rapidly changing tech industry.
Source: https://www.nytimes.com/2025/08/23/technology/intel-computer-chips-tech-ai-trump.html