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Intel reintegrates AI accelerator group into data center division
Wednesday, January 21, 2026 at 02:38 PM
Intel is reintegrating its AI group back into the Data Center Group, reversing a structural change from early 2025. This organizational shift places the company's AI accelerator chip development under the oversight of Kevork Kechichian.
Context
Intel is centralizing its AI efforts by reintegrating the AI accelerator group into its Data Center Group (DCG), reversing a major structural shift initiated by CEO Lip-Bu Tan in early 2025. This reorganization grants data center chief Kevork Kechichian direct oversight of the company’s AI chip strategy, including the flagship Gaudi series. The move is intended to unify development across Intel’s Xeon and networking portfolios, streamlining the enterprise platform as the company seeks better alignment between hardware and software teams to improve execution.
The restructuring follows a difficult stretch where Intel failed to meet its $500 million revenue target for Gaudi 3 in 2024, well below initial projections of $2 billion. As part of a broader $10 billion cost-reduction plan involving 25,000 job cuts, the move aims to create a more competitive front against NVIDIA. By placing AI accelerators back within the data center business, Intel is prioritizing a solutions-oriented approach to bolster its market position through 2026.
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