Bill Gates, the American businessman and philanthropist who currently sits on Forbes’ real-time billionaires list with a net worth of $106.9 billion thanks in part to his co-founding of Microsoft in 1975 and the development of the Windows operating system, is unhappy with the current state of Intel, according to new statements that the 69-year-old shared during a recent interview with the AP about his new memoir, Source Code: My Beginnings.
“I am stunned that Intel basically lost its way. [Intel co-founder] Gordon Moore always kept Intel at the state of the art. And now they are kind of behind in terms of chip design and they are kind of behind in chip fabrication,” Gates told the AP’s Michael Liedtke at one point during their discussion, which covered topics that ranged from vaccine conspiracy views to Google’s antitrust challenges.
“Both of those are very capital intensive,” Gates noted. “They missed the AI chip revolution, and with their fabrication capabilities, they don’t even use standards that people like Nvidia and Qualcomm find easy. I thought Pat Gelsinger was very brave to say, ‘No, I am going to fix the design side, I am going to fix the fab side.’ I was hoping for his sake, for the country’s sake that he would be successful. I hope Intel recovers, but it looks pretty tough for them at this stage.”
Gates’ comments come around a month after Intel reported its fourth-quarter and full-year 2024 financial results, revealing that its Q4 revenue was $14.3 billion, down 7% YoY, while full-year revenue was $53.1 billion, down 2% YoY.
“The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance,” said Michelle Johnston Holthaus, interim co-CEO of Intel and CEO of Intel Products. “Our renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers. Dave and I are taking actions to enhance our competitive position and create shareholder value.”
“The cost reduction plan we announced last year to improve the trajectory of the company is having an impact,” said David Zinsner, interim co-CEO and chief financial officer of Intel. “We are fostering a culture of efficiency across the business while driving toward greater returns on our invested capital and improved profitability. Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics. We will remain highly focused on execution to build on our progress and unlock value.”