Intel's former CEO pushed for the chip maker to buy Nvidia for $20 billion in 2005—the GPU company is now worth $3.5 trillion

HardwareIntel’s former CEO pushed for the chip maker to buy Nvidia for $20 billion in 2005—the GPU company is now worth $3.5 trillionWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

(Image credit: Intel)

Intel office

As some hockey player once said, “you miss 100% of the shots you don’t take”. Or in Intel’s case, you miss out on buying a company that’s currentlysitting secondon the list of most valuable companies in the world, back when it was worth relatively little.

That’s according toa report from the New York Times, detailing how Paul Otellini, Intel’s chief executive from 2005 to 2013, presented the board with an idea to buy a little computer graphics company called Nvidia. This wasn’t long after he’d taken the position, and the board apparently put up a significant amount of resistance, as (at a $20 billion value at the time), it would easily have been Intel’s most expensive acquisition to date.

As a result, Otellini backed away from defending the purchase. One attendee at the meeting reportedly described it as “a fateful moment”, and I should think so, too. Given that Nvidia has since positioned itself at the forefront of the AI boom, and currently has a market cap estimated to bearound $3.5 trillion dollars, it does strike as one of those misses you’d kick yourself for.

Of course, hindsight is a wonderful thing, and other such platitudes. Still, it seems like even back in 2005, some Intel executives could already see some of the future that Nvidia might be involved in. According to its sources, the New York Times reports that some Intel execs believed that the underlying design of its graphics chips might be important for future data centers, which today would count as a massive understatement.

Given some of the reveals here about Intel’s corporate culture (and how it might have contributed to the almighty financial and strategic mess it currently finds itself in), it’s perhaps no surprise that Intel was slow on the draw with this sort of future planning. Intel executives reportedly described the company as “the largest single-cell organism on the planet”, a reference to the insular and single-minded corporate culture at the time.

The focus back then was on x86, and the company’s then-dominant processor designs. Former Intel chief executive Craig Barrett reportedly compared the x86 chip business to a creosote bush, in that creosote poisons competing plants around it. But the profits were rolling in, and as a result it seems that Intel saw little need at the top to buy its way into potential markets to come.

Current Intel CEO Pat Gelsinger previously ledIntel’s Larrabee project, put into action after the failed Nvidia acquisition pitch, in an attempt to create a hybrid of graphics chips and Intel’s PC chip design—predicting that “today’s graphics architectures are coming to an end.”

The biggest gaming news, reviews and hardware deals

The project was a failure, thanks to poor graphics performance and scheduling issues. Gelsinger, however, appears to have never quite given up on the idea. In 2019, he gave an interview to theComputer History Museum (PDF warning), stating that, if Larabee was given more of a chance:

“Nvidia would be a fourth the size they are today as a company, because I think Intel really had a shot right in that space”

Now, with Gelsinger at the helm, Intel finds itself massively on the backfoot—and it’s difficult to know where to start when explaining its current woes.Mass layoffs,cancelled dividends,CPU crashing woes, and not to mention itsongoing manufacturing and fab issuesand potential plans tosell parts of itself off, what once was seen as an invincible giant in the tech industry really does seem to be on its knees.

Your next upgrade(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.

Your next upgrade

(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.

(Image credit: Future)

Nvidia RTX 4070 and RTX 3080 Founders Edition graphics cards

Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.

But one aspect that keeps rearing its ugly head seems to be its approach to strategy and long-term planning, and potential acquisition deals that the company either turned down, or never bore fruit—particularly in regards to AI.

TOPICSNvidia

TOPICS

More about hardwareIs the new RTX 5070 really as fast as Nvidia’s previous flagship RTX 4090 GPU? Turns out the answer is yes. Kinda.It’s time for me to admit that AI-accelerated frame generation might actually be the way of the future and that’s a good thingLatestThe best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kitSee more latest►

More about hardware

Is the new RTX 5070 really as fast as Nvidia’s previous flagship RTX 4090 GPU? Turns out the answer is yes. Kinda.It’s time for me to admit that AI-accelerated frame generation might actually be the way of the future and that’s a good thing

Nvidia RTX 5070 graphics card

Is the new RTX 5070 really as fast as Nvidia’s previous flagship RTX 4090 GPU? Turns out the answer is yes. Kinda.

Nvidia RTX 5090 Founders Edition rendered on a green background.

It’s time for me to admit that AI-accelerated frame generation might actually be the way of the future and that’s a good thing

LatestThe best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kitSee more latest►

Latest

The best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kit

Mister Fantastic mid ultimate

The best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kit

See more latest►

Most PopularAMD accuses Intel’s Arrow Lake of being a ‘horrible’ product and implies a lack of options for consumers has caused the Ryzen 7 9800X3D shortageThis Jinx-inspired gaming PC is my favorite of CES 2025 and I’m head over heels for the hardwareHarrowing report alleges years of horrific abuse at Brandoville Studios, an Indonesian support studio that worked on Assassin’s Creed Shadows and The Last of Us RemakeTencent says it’s not a Chinese military company and is willing to sue the US Department of Defense if it isn’t removed from a blacklistAll Zenless Zone Zero 1.5 livestream codesAsus reveals three new Slash Travel Bags for carting around your ROG Ally—however, none of them are particularly fashion forwardToday’s Wordle answer for Friday, January 10We may not have a roadmap or balance patch just yet, but at least Path of Exile 2’s bugfix patch notes are funnyDeus Ex: Mankind Divided writer didn’t like the ending either: ‘Nothing is resolved’It seems like Square’s finally consistently taking the PC ports of Final Fantasy seriouslyLike a Dragon: Pirate Yakuza in Hawaii looks more like a zany RGG take on Black Flag than I dared hope

Most Popular

AMD accuses Intel’s Arrow Lake of being a ‘horrible’ product and implies a lack of options for consumers has caused the Ryzen 7 9800X3D shortage

This Jinx-inspired gaming PC is my favorite of CES 2025 and I’m head over heels for the hardware

Harrowing report alleges years of horrific abuse at Brandoville Studios, an Indonesian support studio that worked on Assassin’s Creed Shadows and The Last of Us Remake

Tencent says it’s not a Chinese military company and is willing to sue the US Department of Defense if it isn’t removed from a blacklist

All Zenless Zone Zero 1.5 livestream codes

Asus reveals three new Slash Travel Bags for carting around your ROG Ally—however, none of them are particularly fashion forward

Today’s Wordle answer for Friday, January 10

We may not have a roadmap or balance patch just yet, but at least Path of Exile 2’s bugfix patch notes are funny

Deus Ex: Mankind Divided writer didn’t like the ending either: ‘Nothing is resolved’

It seems like Square’s finally consistently taking the PC ports of Final Fantasy seriously

Like a Dragon: Pirate Yakuza in Hawaii looks more like a zany RGG take on Black Flag than I dared hope

HARDWARE BUYING GUIDESLATEST GAME REVIEWS1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads2Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop3Best mini PCs in 2025: The compact computers I love the most4Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands5Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits2Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback3WD Black SN850X 8 TB NVMe SSD review4Ikea Utespelare desk review5Asus ROG Harpe Ace Mini wireless mouse review

HARDWARE BUYING GUIDESLATEST GAME REVIEWS

1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

A bunch of the best Steam Deck accessories on a blue background.

1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

2Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop

Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop

3Best mini PCs in 2025: The compact computers I love the most

Best mini PCs in 2025: The compact computers I love the most

4Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands

Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands

5Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested

Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested

1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

Thank Goodness You’re Here review

1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

2Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback

Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback

3WD Black SN850X 8 TB NVMe SSD review

WD Black SN850X 8 TB NVMe SSD review

4Ikea Utespelare desk review

Ikea Utespelare desk review

5Asus ROG Harpe Ace Mini wireless mouse review

Asus ROG Harpe Ace Mini wireless mouse review

The biggest gaming news, reviews and hardware deals#

The biggest gaming news, reviews and hardware deals