Nvidia success may offer Intel a lifeline

Hi, it’s Ian in San Francisco. Nvidia is eclipsing the chip world, but it may need to share a little of its aura with Intel for its once-pow [View in browser]( [Bloomberg]( [by Ian King]( Hi, it’s Ian in San Francisco. Nvidia is eclipsing the chip world, but it may need to share a little of its aura with Intel for its once-powerful rival to thrive. But first... Three things you need to know today: • Reddit files publicly [for an IPO]( • UnitedHealth care blamed nation-state hackers [for a major outage]( • JPMorgan traders see Nvidia as a [catalyst for a stock rally]( The fortunes have flipped [Intel Corp.](bbg://screens/INTC%20US%20EQUITY%20FA) held an [event this week]( that didn’t excite investors — and was quickly overwhelmed by the frenzy of coverage of [Nvidia Corp.](bbg://screens/NVDA%20US%20EQUITY%20GP%20D)’s earnings, which did. While the [numbers posted by Nvidia](were remarkable and produced all manner of comparisons, one that quietly slipped by was confirmation that the company is now the largest US chipmaker by the one metric that counts: sales. It snatched that title from Intel. Intel leader [Pat Gelsinger](bbg://people/profile/1740128) spent his time in the spotlight Wednesday trying to make sure everyone understood how much has changed in the industry. Talking about potential customers for Intel’s effort to manufacture chips for others, Gelsinger referred to Nvidia Chief Executive Officer [Jensen Huang](bbg://people/profile/1782546) and Advanced Micro Devices Inc. CEO [Lisa Su](bbg://people/profile/4353300) by their first names. Earlier, Microsoft Corp. CEO Satya Nadella chimed in with a video endorsement, saying his company will use Intel’s factories to manufacture components the software maker will design itself. This may seem like an incremental sign that Gelsinger’s plan to recast a company that dominated an entire industry for decades is showing progress — and it didn’t help Intel’s stock price. But he’s trying to sell a transition that’s arguably as shocking as Nvidia’s ascent. Gelsinger joined Intel as a teenager and contributed to early versions of its X86 line of chips that took over the personal computer industry before the company parlayed that position into utter dominance of the world’s data centers. Read More: [Intel’s New Hail Mary Is a $20 Billion Bet on U.S. ManufacturingÂ]( Intel’s years of financial strength and technological leadership, which faltered under Gelsinger’s predecessors, made for extremely difficult times for many other companies, among them Nvidia and AMD. When Su took over the reins at AMD, which was founded as a second-source provider of Intel chips, some questioned whether it could survive as an independent company. At Nvidia, Huang for years watched Intel unveil new products that executives proclaimed would do away with the need for Nvidia’s graphics chips, and many analysts were ready to believe the larger company. Now Nvidia is the leader [in chips for artificial intelligence work]( and is producing such impressive results that it’s one of the top five most-valuable companies in the world. AMD, under Su, has seen its revenue increase almost fourfold and the stock price leap 10-fold in the past five years. Intel, to transform itself into a [company that manufactures products]( for others as well as itself, must prove it won’t play favorites. The Microsoft deal shows there are believers. The chips that the software maker has designed for its data centers are direct competitors with Intel products. By taking on Microsoft as a manufacturing customer, Intel is telling its design teams that they’re no longer automatically first in line for access to the factories that the company predicts will again be tops in the business. Those plants will do their best to make competitors shine. Intel is early in its effort, but the ultimate vindication may require “Jensen” “Lisa” and the other chipmakers who’ve have only just emerged from Intel’s shadow to pick up the phone to Pat and place orders. —[Ian King](mailto:ianking@bloomberg.net) The big story AT&T’s mobile network was restored on Thursday after an hourslong and widespread outage that caused [hundreds of thousands of wireless subscribers to lose service.]( The FBI and U.S. Department of Homeland Security have started investigating the reason behind the interruption. One to watch [Watch Bloomberg Technology’s interview with VinFast Chair Le Thi Thu Thuy]( Get fully charged Google said it will pause Gemini’s AI-generated images of people after [criticism over race inaccuracies.]( The founder of Alphabet’s sciences unit Verily, Andy Conrad, has joined [venture capital firm S32.]( Japan produced an early victory [in the race to make more chips](bbg://news/stories/S8GWRWT0AFB4). Andreessen Horowitz is still [betting on crypto industry startups](. More from Bloomberg Bloomberg Technology Summit: Led by Bloomberg Businessweek Editor Brad Stone and Bloomberg TV Host and Executive Producer Emily Chang, this full-day experience in downtown San Francisco on May 9 will bring together leading CEOs, tech visionaries and industry icons to focus on what's next in artificial intelligence, the chip wars, antitrust outcomes and life after the smartphone. [Learn more](. 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