Intel Leadership Shakeup: CEO Lip-Bu Tan Simplifies Structure, Promotes AI Head

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Intel's new CEO, Lip-Bu Tan, is restructuring the company’s leadership by flattening its management hierarchy, according to an internal memo. Key chip divisions, such as the data center, AI, and personal-computer chip groups, will now report directly to Tan, a shift from previous oversight by Michelle Johnston Holthaus, who remains in her role as chief executive of Intel products and will take on additional responsibilities in the future.

These leadership changes mark Tan's first significant action since assuming the CEO position last month, aiming to rejuvenate the company after a period of challenges. Tan emphasized the importance of working directly with engineering and product teams to strengthen Intel’s solutions.

The restructuring also includes the promotion of Sachin Katti, Intel’s networking chip chief, to chief technology officer and AI head. Katti will now lead Intel’s overall AI strategy and product roadmap, in addition to overseeing Intel Labs and fostering relationships within the startup and developer ecosystems. He replaces Greg Lavender, who is retiring. Katti is also a Stanford professor.

Tan’s restructuring follows Intel’s struggles, including missed opportunities in the AI chip market, where Nvidia has emerged as a dominant player. Despite acquiring AI chip startups, Intel has failed to establish a clear strategy and recently canceled its Falcon Shores chip project.

The memo also mentions Intel's search for a new head of government affairs to handle the company’s relationships with global governments, particularly in light of the ongoing trade tensions with China under U.S. President Donald Trump's tariffs. This role will report directly to Tan.

Tan’s changes aim to make Intel leaner and more engineering-focused, eliminating bureaucratic hurdles that he believes have hindered innovation. He acknowledged that organizational complexity and slow decision-making processes have negatively impacted Intel’s ability to execute efficiently.

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