{"id":231642,"date":"2025-12-14T00:17:11","date_gmt":"2025-12-14T00:17:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/231642\/"},"modified":"2025-12-14T00:17:11","modified_gmt":"2025-12-14T00:17:11","slug":"intel-said-to-have-pursued-deals-that-boosted-ceos-fortune-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/231642\/","title":{"rendered":"Intel said to have pursued deals that boosted CEO\u2019s fortune \u2013 The Irish Times"},"content":{"rendered":"

When the chairman of artificial intelligence (AI) chip start-up Rivos wanted Intel to bid for the company, he had no need to phone the chip giant. That\u2019s because the chairman of Rivos was also Intel\u2019s <\/a>chief executive: Lip-BU \u200bTan<\/a>.<\/p>\n

Tan had pitched Intel\u2019s board on buying Rivos in the summer of 2025, but he had no luck. The board told Tan he had a conflict in representing both Rivos\u2019 interests and Intel\u2019s, and he lacked a strategy on artificial intelligence to justify a deal, three people familiar with the events told Reuters.<\/p>\n

Tan asked one of his lieutenants at Intel to pitch a new AI plan, leading to partnership talks to Rivos, the people said. But now there was a problem: social media giant Meta had been stalking Rivos and made an offer for the company.<\/p>\n

Meta\u2019s interest spurred Intel to make its own offer. Meta countered with a sweetened bid. \u200dThe competition for the start-up drove the deal and incentives above the $2 billion (\u20ac1.7 billion) valuation that Rivos had sought in fundraising earlier this year. Some of the sources pinned this package at around $4 billion.<\/p>\n

Meta announced plans to buy Rivos in September. By then the bidding process had boosted the start-up\u2019s returns at Meta\u2019s expense.<\/p>\n

Reuters was unable to determine how much the Intel CEO profited personally as a Rivos shareholder because the financials are not public. But in a blog post on its website, Tan\u2019s venture-capital firm, Walden Catalyst, touted how he had delivered a \u201csuccessful outcome\u201d for its investors and congratulated the Rivos team for their \u201cremarkable achievement.\u201d<\/p>\n

The events show one of at least three instances \u200dwhere Intel has pursued deals that benefit Tan financially either by exploring bids for start-ups or investing in them directly through Intel\u2019s investment arm, Intel Capital, said two of the sources.<\/p>\n

[\u00a0Lip-Bu Tan, Intel CEO with Silicon Valley\u2019s toughest turnaround jobOpens in new window<\/a>\u00a0]<\/p>\n

Intel declined to make Tan available for an interview for this story. Meta did not respond to requests for comment, and Rivos declined to comment.<\/p>\n

Intel hired Tan in March in part for his experience as a venture capitalist and unparalleled industry connections as a long-time investor in tech companies. Those connections have helped Intel clinch a $5 billion investment from Nvidia and a $2 billion investment from SoftBank.<\/p>\n

\"\"Why are apartments in Ireland so much more expensive to build than houses?<\/p>\n

Since Tan\u2019s arrival, Intel has implemented policies requiring Tan to recuse himself from participating in investment decisions where he might benefit, two sources said. Specifically, Tan cannot attend or vote in decision meetings of Intel\u2019s board or Intel Capital\u2019s investment committee if he has a conflict in a venture or companywide transaction, the sources said.<\/p>\n

Such recusals are commonplace in industry. But they had not been an issue to the same degree at Intel because its leadership prior to Tan had fewer potentially conflicting investments, three of the sources said.<\/p>\n

In the event of a Tan recusal for Intel Capital, the first two sources said, decision-making authority for the venture unit\u2019s investment committee goes to chief financial officer David Zinsner, who reports to Tan.<\/p>\n

Intel declined to make Zinsner available for \u200can interview.<\/p>\n

Intel\u2019s board knew when it appointed Tan that his web of investments in chip and technology companies could create conflicts, but the board accepted this, hoping that Tan can revive the iconic US chipmaker, which lost $19 billion last year, one of the people said.<\/p>\n

Intel\u2019s 11 independent board directors did not individually comment on Tan, but in response to Reuters queries, an Intel spokesperson said: \u201cThe Board of Directors believes it\u2019s important that Intel fully leverage his vast network and position Intel to capture the next wave of industry innovation and opportunity.\u201d<\/p>\n

[\u00a0US government investment in Intel looks bad for LeixlipOpens in new window<\/a>\u00a0]<\/p>\n

Tan\u2019s deal making comes as the administration of President Donald Trump agreed to make an $8.9 billion investment for what would be the largest ownership stake in the chipmaker, designating \u2060it as strategic to the US and effectively making its citizens shareholders.<\/p>\n

Some chip-industry analysts have said in research notes that they welcomed Tan\u2019s industry relationships. \u201cHe has a wide view across the ecosystem,\u201d said Bernstein analyst Stacy Rasgon in an interview with Reuters. \u201cAnd that\u2019s helpful for Intel.\u201d<\/p>\n

Tan does not perceive his deal making at Intel to be conflicted, said two of the sources, who are familiar with his thinking. Tan believes that his roles at these start-ups and at Intel \u200cmake him \u200buniquely able \u200dto negotiate transactions that benefit all parties, the people said.<\/p>\n

In a statement, an Intel spokesperson disputed that Tan\u2019s deal making posed any problem. \u201cThe company has an unwavering commitment to the highest standards of corporate governance, integrity, and accountability,\u201d the spokesperson said. Tan\u2019s \u201cextensive relationships across the global semiconductor ecosystem are invaluable as Intel positions itself to capitalise on a rapidly evolving industry landscape.\u201d<\/p>\n

The Securities and Exchange Commission would not require Intel to disclose related-party transactions that could involve Tan until the spring of 2026, a year after its last disclosure, which took place the week after his start date.<\/p>\n

US regulations require such disclosures when transactions personally benefiting corporate officers exceed $120,000, though experts have said smaller dollar amounts can be material to investors if the information would inform a decision to sell or purchase stock.<\/p>\n

Tan believed Intel needed to buy Rivos because earlier in-house efforts to enter the AI chip market had failed, one of the sources said. In the statement, the Intel spokesperson said Tan was \u201cadvancing its AI strategy\u201d and \u201crevitalising its engineering-centric, customer-first culture.\u201d<\/p>\n

Rivos was one of the big targets for Intel where Tan had interests on both sides of the deal. Tan also pitched Intel\u2019s board on buying the troubled AI computing start-up SambaNova, where Tan served as executive chairman, the first three sources said.<\/p>\n

The rationale \u2013 \u2060debated inside Intel \u2013 was that SambaNova also could provide more tech and talent to build AI chips, the sources said.<\/p>\n

SambaNova declined to comment on any talks between the start-up and Intel. \u201cWhile we\u2019re always exploring strategic options, our focus remains on accelerating the roadmap, delivering products to market, and supporting our customers,\u201d a spokesperson said.<\/p>\n

Intel also declined to comment on the SambaNova talks.<\/p>\n

Tan\u2019s portfolio has drawn scrutiny before. In April, Reuters documented how Tan\u2019s investment firms had stakes in more than 600 Chinese companies, some with military ties, drawing a rebuke by Trump that the US chip manufacturer\u2019s CEO \u2060was \u201chighly CONFLICTED.\u201d<\/p>\n

According to a White House official, Tan subsequently cleared up Trump\u2019s concerns in an Oval Office meeting, which paved the way for collaboration on US national and economic security. \u2060In September, Trump publicly celebrated Intel\u2019s rising share price following Tan\u2019s Nvidia deal.<\/p>\n

Intel\u2019s share price has roughly doubled since Tan\u2019s appointment, outpacing the percentage gains of the S&P 500 and chip leader Nvidia in that time.<\/p>\n

Soon after his appointment as CEO, Tan took direct control of Intel\u2019s investment arm, Intel Capital, reversing a plan to spin it off. Instead, he reorganised the company so that Intel Capital would report to him, according to two of the sources, for reasons Intel has not disclosed. Its investment committee would be composed solely of Tan and one of his direct reports, finance chief Zinsner, said three people familiar with the change.<\/p>\n

Since then, Intel Capital has invested in several companies in which Tan has a stake through his investment vehicles or venture capital firms, which include A & E Investment, Celesta Capital and Walden International, three of the sources \u200dsaid. Some Intel staff have felt an obligation to explore such deals to win Tan\u2019s support, two of them said.<\/p>\n

One such investment was in proteanTecs, which announced a late-stage, Series D funding round in September. Intel Capital upped its existing stake in the start-up, helping increase the value of Tan\u2019s holdings through A & E Investment and Celesta Capital, funding data shows.<\/p>\n

ProteanTecs declined to comment. A & E Investment, Walden Catalyst and Walden International did not respond to requests for comment. In a statement, Celesta Capital said Tan \u201chas always acted with integrity and a commitment to doing what is right for all stakeholders.\u201d<\/p>\n

Before Tan became CEO, Intel Capital co-invested with him or his investment firms at least 12 times since 2019, funding announcements show.<\/p>\n

Intel is not alone in having a venture capital arm. That\u2019s common at large technology companies, including Nvidia, Microsoft, Alphabet and Qualcomm. But unlike those other companies, Intel is unusual in having a CEO who oversees its venture unit while also leading unrelated investment firms, a Reuters review of leadership at those companies shows.<\/p>\n

Reuters was unable to determine how much Intel\u2019s recent investments had in total increased Tan\u2019s net worth, estimated to be well over $500 million.<\/p>\n

Two corporate governance experts consulted by Reuters said Tan\u2019s deal making raises red flags due to the conflicts inherent in forging deals with his own portfolio companies.<\/p>\n

One of them also said that Intel could benefit from Tan\u2019s connections. \u201cYou don\u2019t want to preclude making good investments because your CEO is well connected,\u201d said Daniel Taylor, a professor at the Wharton School specialising in corporate disclosures and insider trading.<\/p>\n

The Intel CEO has consistently highlighted his portfolio in public appearances. In one of his first presentations as the Intel chief in March, he talked up his 251 chip-related investments, an online video from the occasion shows.<\/p>\n

At an October chip conference in Phoenix, Tan gave a speech representing Intel that featured slides touting still more holdings, including in proteanTecs and SambaNova.<\/p>\n

Intel\u2019s code of conduct encourages executives to disclose potential conflicts to the company\u2019s board and top legal and compliance officers for resolution. \u201cWe avoid situations that interfere or appear to interfere with our ability to act in the best interests of Intel,\u201d the code of conduct states. It adds that staff must mind conflicts arising from \u201can ownership interest in an Intel supplier, customer, or competitor\u201d and from \u201coutside employment that interferes with your obligations to Intel.\u201d<\/p>\n

The two corporate governance experts said Tan should have dropped his portfolio investments, placed them in a blind trust or set up a special \u200ccommittee of the board to remove potential conflicts with his investment portfolio. Some lawyers have said special committees are not always necessary, \u200cand some scholars argue outside board roles apprise executives of strategic information.<\/p>\n

Intel declined to say if Tan had taken any such measure.<\/p>\n

The Intel board\u2019s independent Audit Committee \u201cactively monitors, reviews, and approves, as appropriate, any related-party transactions in strict accordance with Intel\u2019s rigorous Related-Party Transactions Policy,\u201d the company spokesperson said.<\/p>\n

The policy has exceptions. Transactions in which an Intel executive owns less than 10 per cent of a company that is party to a deal, whose value does not exceed $1 million or 2 per cent of that company\u2019s revenue, are deemed to be \u201cpre-cleared,\u201d the policy states. It was not clear how many investments by Intel, if any, fell under this policy, which predated Tan\u2019s leadership.<\/p>\n

In 2018, SambaNova was a start-up with lofty ambitions to build an AI computing system that could rival Nvidia\u2019s AI hardware and software ecosystem. Tan\u2019s venture firm Walden International co-led SambaNova\u2019s $56 million Series A funding round that year, which secured Tan\u2019s position on \u200cits board.<\/p>\n

Over the years, SambaNova hoovered up money from investors: more from Tan\u2019s venture firm and, around 2021, a big check from SoftBank, where Tan served as a board director until 2022. The $676 million Series D round led by SoftBank valued SambaNova at around $5 billion and gave Tan\u2019s holdings a healthy increase on paper.<\/p>\n

SoftBank declined to answer if Tan had a role in persuading it to invest in SambaNova.<\/p>\n

But the start-up\u2019s ambitious vision wasn\u2019t panning out, three people familiar with the matter said. Customers had more demand for Nvidia\u2019s chips, which are good for a wide variety of uses in AI. That contrasts with the silicon from SambaNova, which \u2060is designed for more specific AI applications.<\/p>\n

In 2024, Tan stepped in as SambaNova\u2019s new executive chairman in the hopes that he could help grow its business faster. The company was poised to run out of its cash, three people familiar with the matter said. It laid off 77 people in California, or reportedly about 15 per cent of its staff, in April.<\/p>\n

The chip start-up tried to drum up interest for another funding round, but found few takers, two sources said. Its revenue meant it would have to fundraise or go up for sale at a lower valuation, said the people and a third source. Bankers pegged its worth at $2 billion to around $3 billion at most, two of the sources said.<\/p>\n

Tan asked Intel to look at a deal with the chipmaker over the summer, three sources said.<\/p>\n

In recent weeks, some of SambaNova\u2019s investors provided additional financing to tide over the start-up, two people familiar with the insider round said.<\/p>\n

In a statement to Reuters, a SambaNova spokesperson confirmed the start-up recently secured additional funding, adding its business \u201cis performing really well.\u201d<\/p>\n

Deal talks to SambaNova are ongoing, two of the sources said. Intel and SambaNova have signed a non-binding term sheet, one of them said. \u2013 Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"When the chairman of artificial intelligence (AI) chip start-up Rivos wanted Intel to bid for the company, he…\n","protected":false},"author":2,"featured_media":17747,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[289,79,18,19,3572,17,3574,1722],"class_list":{"0":"post-231642","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-artificial-intelligence","9":"tag-business","10":"tag-eire","11":"tag-ie","12":"tag-intel","13":"tag-ireland","14":"tag-lip-bu-tan","15":"tag-meta"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115715051175932618","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/231642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=231642"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/231642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/17747"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=231642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=231642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=231642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}