John Gruber’s Daring Fireball consistently provides a perceptive view into the tech industry. This post dives into the situation at Intel and how Pat Gelsinger was forced out.
The Verge’s Sean Hollister penned an excellent high-level summary of how Pat Gelsinger wound up getting forced out of Intel, “What Happened to Intel?”. A wee bit of pussyfooting here, though, caught my eye:
Just how bad was it before Gelsinger took the top job?
Not great! There were bad bets, multiple generations of delayed chips, quality assurance issues, and then Apple decided to abandon Intel in favor of its homegrown Arm-based chips — which turned out to be good, seriously showing up Intel in the laptop performance and battery life realms. We wrote all about it in “The summer Intel fell behind.”
Intel had earlier misses, too: the company long regretted its decision not to put Intel inside the iPhone, and it failed to execute on phone chips for Android handsets as well. It arguably missed the boat on the entire mobile revolution.
Gruber’s article continues through a litany of Intel misses. Mobile market, ARM chips, GPUs, chips for AI.
He concludes:
Intel never should have been blithe to the threat. The company’s longtime CEO and chairman (and employee #3) Andy Grove titled his autobiography Only the Paranoid Survive. The full passage from which he drew the title:
Business success contains the seeds of its own destruction. Success breeds complacency. Complacency breeds failure. Only the paranoid survive.
Grove retired as CEO in 1998 and as chairman in 2005. It’s as though no one at Intel after him had listened to a word he said. Grove’s words don’t read merely as advice — they read today as a postmortem synopsis for Intel’s own precipitous decline over the last 20 years.
I’m wondering how much the disease at Intel is similar to the disease that struck Boeing. Engineering companies run by finance people. My management training included the maxim to never let companies be run by sales (a problem in the trade media, by the way). Maybe another maxim would be never let the finance department run the company?
