Intel will create new divisions for software and high-performance computing businesses

Intel announced the reorganization of its business structure under the leadership of its new CEO Pat Gelsinger and the establishment of a number of departments to strengthen its focus on networking and edge, software and computing products.

The company's data platform group was adjusted into two new departments: one is the data center and artificial intelligence department, led by long-term executive vice president and general manager Sandra Rivera; the other is the network and edge department , The department unites the previous network platform, internet of things and connectivity departments. The latter will be led by Stanford University professor and Barefoot Networks co-founder Nick McKeown. Intel acquired Barefoot Networks in 2019, after which McKeown served as a part-time senior researcher at Intel.

Chipmaker Intel said on June 22 that it will also create two new business units, focusing on software and high-performance computing and graphics.

Intel also said that current executives Sandra Rivera and Raja Koduri will assume new senior leadership positions, while technology industry veterans Nick McKeown and Greg Lavender will join the company.

Lavender, who recently served as VMware's senior vice president and chief technology officer, will serve as general manager of the new software and advanced technology group, while Koduri will lead an accelerated computing systems and graphics group.

Koduri is a senior employee of Apple (AAPL.O) and Advanced Micro Devices (AMD.O). He will lead the new team responsible for competing with rival Nvidia (NVDA.O) due to artificial intelligence and machines. With the rise of learning software, Nvidia's graphics chip gained a position in the data center.

Although Intel's mistakes in the manufacturing business caused its flagship central processing unit to lag behind its competitors, the company took a different approach to its graphics chips, allowing them to be produced elsewhere. Reuters reported earlier this year that Intel plans to use Taiwan Semiconductor Manufacturing International Corporation (2330.TW) to better compete with Nvidia's chips.

After providing software developers with tools to write code for their chips, Nvidia also gained an advantage in front of Intel. These tasks will be the focus of Lavender's newly formed team. Intel has stated that it is developing software tools to write applications for new types of chips, such as those based on the open source RISC-V architecture.

Rivera, McKean, Lavender and Koduri will report directly to Intel CEO Pat Gelsinger.

Navin Shenoy, who was in charge of the data center group before Rivera, will leave Intel on July 6.

"Pat Moorhead, principal analyst at Moor Insights & Strategy, said: "I believe that at this moment, a flatter organization is better because it should be able to make decisions and execute faster. "Although Intel still has more than 90% of the general-purpose server processor share, it did have a 98% share five years ago. I think this is a halo that is difficult to get rid of."