Intel CEO Backs Open-Source AI Models to Boost Efficiency and Computing Demand
Intel Corporation (INTC) Chief Executive Lip-Bu Tan endorsed open-source Chinese frontier artificial intelligence models, describing the performance of systems such as DeepSeek, Kimi, and GLM as good enough. Tan noted that these models feature lower cost per token and rapid adoption, stating that open-source technology provides the best path to increase overall operational efficiency.
Lowering the cost of running AI workloads could accelerate software deployment across the industry. For Intel, expanded usage of inference applications creates higher demand for central processing units, server hardware, and data center infrastructure. Intel has linked its growth strategy to software agents executing multi-step tasks, pointing to a 59% rise in data center and AI segment revenue during its second quarter.
Investors are monitoring how broader market volatility and chip sector competition impact the stock. Intel shares fell over 2% following recent sector weakness and reports of tightening memory-chip rivalry. Market participants are tracking whether the stock holds above the $100 price level as the company approaches its third-quarter financial results, where management projected revenue between $15.8 billion and $16.8 billion.
Key points
- Intel CEO Lip-Bu Tan called Chinese open-source AI models good enough and noted their lower cost per token and rapid adoption rate.
- Intel expects broader AI deployment to increase market demand for its CPUs, servers, and data center infrastructure.
- The company reported second-quarter revenue of $16.13 billion, with its data center and AI division expanding by 59%.
- Intel stock slipped 2.22% to $104.70 as traders monitor key technical support around the $100 price mark.
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How we writeDisclaimerQuestions and answers
What did Intel's CEO say about Chinese AI models?
Intel CEO Lip-Bu Tan stated that Chinese frontier AI models like DeepSeek, Kimi, and GLM are good enough, noting they cost less per token and experience fast adoption. He advocated for open-source technology to drive efficiency across the AI industry.
How could cheaper AI models benefit Intel?
Lower cost AI models can drive wider deployment of AI software and inference tasks. This expanded usage boosts market demand for Intel's CPUs, servers, and data center hardware required to run agentic AI workloads.
What are Intel's financial projections for the third quarter?
Intel guided third-quarter revenue to be between $15.8 billion and $16.8 billion, with non-GAAP earnings expected at $0.38 per share.