[HN Gopher] Intel's Immiseration
       ___________________________________________________________________
        
       Intel's Immiseration
        
       Author : rbanffy
       Score  : 96 points
       Date   : 2024-08-08 19:11 UTC (3 hours ago)
        
 (HTM) web link (thechipletter.substack.com)
 (TXT) w3m dump (thechipletter.substack.com)
        
       | PaulHoule wrote:
       | The biggest problem I've seen with Intel is that they are
       | "getting high on their own supply" and the whole tech press
       | enables them with the sole exception of Charlie Demerjian.
       | 
       | They should pick a few random people out of the phone book and
       | pay them handsomely for their advice, this way they might start
       | to "see themselves as other see them". Most of all they need to
       | recognize the phenomenon of "brand destruction" which has
       | manifest in clueless campaigns such as "Ultrabooks", brands that
       | should have been killed off years ago ("Celeron", sorry, low
       | performance brands have a shelf life, there's a reason why Honda
       | is still making the Civic but GM is not making the Chevette) and
       | that they should write it in their bylaws that they are getting
       | out of the GPU business permanently (they've made so many awful
       | products it will take 15 years for people to get the idea that an
       | Intel GPU adds value, instead it's this awful thing you have to
       | turn off so that it won't screw up graphics in your web browser
       | when you're using a Discrete GPU.) People might get their heads
       | around the idea that an Intel CPU is a premium brand _if_ it had
       | a GPU chiplet from a reputable manufacturer like AMD or NVIDIA.
       | 
       | (Oddly when Intel has had a truly premium brand, as in SSDs,
       | they've ignored it. Hardly anybody noticed the great 95% latency
       | performance that of Intel SSDs because hardly anybody realizes
       | that 95% latency is _what you feel when your computer feels
       | slow_. Intel SSDs were one Intel product that I would seek out by
       | name, at least until they sold their SSD division. Most people
       | who 've run a lot of Intel SSDs swear by them.)
        
         | is_true wrote:
         | Does the new owner provides the same performance?
        
         | christkv wrote:
         | The CEO had only been in charge since 2021 bringing an engineer
         | back to the helm. How long does it take to bring a big ship
         | like Intel around and undo decades of internal rot? It will be
         | interesting to see who is let go in the coming months.
        
           | akira2501 wrote:
           | > How long does it take to bring a big ship like Intel around
           | and undo decades of internal rot?
           | 
           | If it takes that long, then this is your actual problem, and
           | not how many engineers are in the loop at the board level.
        
             | soulbadguy wrote:
             | >If it takes that long, then this is your actual problem
             | 
             | Most IC design life cycle are 5+ years. Expecting to turn
             | over in less is part of the problem intel is having
             | currently.
        
             | macintux wrote:
             | I'm skeptical. Big company, design & manufacturing cycles
             | on the order of years because chips are that sophisticated
             | these days, I don't know what you'd expect to see within 3
             | years of a new CEO.
        
               | barkingcat wrote:
               | to be honest, they should have done a layoff 3 years ago,
               | as soon as Pat Gelsinger came onboard, and fired 2 entire
               | layers of management.
               | 
               | No engineers or support people, but just pure middle
               | managers - fire 2 or 3 layers. if they did that 3 years
               | ago, they would be in a better position now.
        
           | code_biologist wrote:
           | Though prior to Gelsinger, Youtuber and chip leaker / rumor
           | monger "Moore's Law is Dead" mentioned that Jim Keller's
           | stint at Intel was so short (April 2018 - June 2020) because
           | of internal cultural toxicity. In particular, things like
           | leaders of major groups in Intel trying to get employees of
           | other groups fired, so as to make their own relative progress
           | look better. Take with a pound of salt of course, but MLiD's
           | sources have been pretty decent.
           | 
           | You only resolve that kind of badness by firing a bunch of
           | SVPs and VPs and Gelsinger hasn't done that, for many
           | possible reasons.
        
         | Miraste wrote:
         | A lot of these are symptoms of the root cause: a bad product.
         | Ultrabooks aren't a terrible concept; they're the Wintel
         | version of Macbook Airs. Making a non-Apple Apple device is a
         | fine business strategy, and Samsung has made plenty of money
         | off of it. The problem was that Intel chips continually
         | crippled them, making them hot and slow with no battery life.
         | People don't like Celerons and iGPUs because they all run at
         | the speed of molasses.
         | 
         | Any of these branding decisions would have worked fine, if the
         | products did. But no amount of marketing will fix bad
         | engineering.
        
           | soulbadguy wrote:
           | bad product is a symptoms of a even deeper cause... Lack of
           | competition. The decline of intel started long ago. The
           | financial results here are just very very lagging indicator
           | of that. The lack of competition combined with very agressive
           | anti competitive practice allow them to survive on pretty bad
           | product line. In a healthy market, competition would have
           | force intel to improve well before the point we are now
        
           | adrian_b wrote:
           | While the Intel laptop CPUs may have been not good enough,
           | that is not where Intel has lost money.
           | 
           | The current financial results have shown decent profits for
           | the consumer CPUs, which could have been greater if Intel had
           | succeeded to produce more Meteor Lake CPUs. Intel could not
           | produce as many Meteor Lake CPUs as the demand because their
           | new Intel 4 manufacturing process has low production yields.
           | 
           | While Intel lost money in their foundry, that was unavoidable
           | due to the high expenses needed for catching up with TSMC.
           | 
           | Where Intel had great losses was in server CPUs. The reason
           | for these losses must have been that Intel had to grant very
           | large discounts to the big buyers of server CPUs, in order to
           | convince them to not buy superior AMD server CPUs.
           | 
           | These losses in server CPUs were easily predictable, because
           | even if Intel has succeeded to reach in time all the publicly
           | announced milestones of their roadmap, their roadmap itself
           | does not hope to reach parity with the AMD server CPUs before
           | H2 2025 (and that assuming that AMD will not introduce Zen 6
           | during 2025, which would move the target).
           | 
           | It looks like Intel has made a PR mistake. Even if their
           | public roadmap has shown all the time that they will continue
           | to have big losses for at least one more year, that was
           | obvious only for technical people, who could compare the
           | future Intel products with the AMD products, because Intel
           | has not said any word in their roadmap about what the
           | competition will have at the same time. For non-technical
           | people, the Intel press releases sounded more optimistic than
           | they should have been, leading to disappointment caused by
           | financial results that should not have been surprising.
        
             | Tuna-Fish wrote:
             | > The current financial results have shown decent profits
             | for the consumer CPUs,
             | 
             | Only after serious financial alchemy. The client group has
             | a decent op margin, but the foundry group has an absolutely
             | terrible one, and the client group sells products that they
             | buy (internally) from the foundry group at arbitrarily set
             | prices. What would the client margins be if the internal
             | price they pay for their products was set so that the
             | foundry breaks even?
        
           | einpoklum wrote:
           | > Ultrabooks aren't a terrible concept; they're the Wintel
           | version of Macbook Airs.
           | 
           | I'd say both are a terrible concept. I mean, it sells, but
           | it's still terrible. A laptop being thin is not really such a
           | virtue and people's life would be better with a decent-travel
           | keyboard, better heat dissipation and more ports than with
           | 5-10mm less laptop height.
        
             | paganel wrote:
             | I don't really care that much about brands nor laptops for
             | that matter, but my M1 Air is really, really nice given the
             | money I've paid for it. Why should I burden myself with
             | carrying a big laptop thing when I can instead carry a
             | Macbook Air that is much lighter and which does very good
             | job?
        
             | Almondsetat wrote:
             | Who are you to say what would make people's lives better?
        
               | PaulHoule wrote:
               | An actual computer user who's probably at least as
               | qualified as whoever made these decisions at Intel.
        
               | Almondsetat wrote:
               | I'm an actual computer user and I disagree. Now what?
        
             | wtallis wrote:
             | Heat dissipation and lots of ports are why I have a
             | desktop. I don't want that from my MacBook Air. A fan isn't
             | necessary or desirable for a machine that is primarily used
             | for web browsing, watching movies, and light gaming.
        
               | saulpw wrote:
               | You know what I want for my desktop, is a battery, so my
               | computer doesn't reboot when I lose power for 5 seconds.
               | Yes I know about UPSes, but they're $100+ and unwieldy. I
               | just need 30 seconds grace period to save my work!
               | 
               | This is the main reason why I probably won't get a
               | desktop again.
        
             | askafriend wrote:
             | That's wrong and the market has proven it. The M3 MacBook
             | Air is the best computer for most people - period, not just
             | best ultrabook or best laptop. There are almost no
             | compromises for 99% of people's usage.
        
               | soulbadguy wrote:
               | > The M3 MacBook Air is the best computer for most
               | people.
               | 
               | Maybe, that it doesnt imply that it's the best because
               | it's an ultrabook, or that a non-ultrabook version of the
               | macbook air (not the macbook pro...) wouldn't have been
               | better.
        
             | soulbadguy wrote:
             | There is nothing wrong about the concept of ultrabook. Just
             | terrible implementation.
        
         | impossiblefork wrote:
         | But don't they need to get into the GPU business?
         | 
         | Surely GPUs or similarly very parallel machines for things like
         | ML training are very needed and will remain very needed. Seeing
         | as firms such as Groq have done fine, surely Intel can do
         | something of that sort without much difficulty?
         | 
         | Since their GPU business has been unsuccessful perhaps they can
         | go for whatever makes sense, as there's nothing of this sort
         | that they can release that will compete with their own
         | products.
        
           | pradn wrote:
           | The AI boom is, in theory, a godsend for Intel and AMD. You
           | can focus on creating good tensor computation hardware,
           | without having to worry about getting gamers on board. No
           | need for "Game ready drivers" or compatibility with complex
           | legacy graphics APIs.
           | 
           | Of course, there's the elephant the room for general purpose
           | tensor machines, which is CUDA - famously closely guarded
           | Nvidia. But with the new wave of "above-CUDA" APIs like
           | TensorFlow, PyTorch, and Keras, there's an opportunity to
           | skip the CUDA layer altogether.
        
             | Sparkyte wrote:
             | AI doesn't exist with the right amount of collected data,
             | we're going to hit a wall very soon where we just get bad
             | AI data constantly because we are throwing data to the wall
             | and hoping it sticks. Businesses should not be investing in
             | AI right yet maybe 2-3 more years.
             | 
             | The businesses that should are the startups and businesses
             | who are helping define the model, like ChatGPT and
             | Microsoft, but the adoption is still too early. If I was
             | McDonald's or Wendy's and I wanted to use AI to help
             | promote sales to customers I would need to be able to grab
             | demographic data which may not be appropriate PII data.
             | 
             | All of the lawsuits happening right now for data collected
             | without permission of the data provider is going to all
             | change the landscape.
        
               | nullc wrote:
               | I think there is still a good business to be made taking
               | the AI stuff we have _right now_ and making it highly
               | performant.
               | 
               | Stable diffusion models are awesome and super useful. I
               | don't necessarily mean the simplistic text->image stuff
               | (though it's clearly useful)-- but denoising, in
               | painting, animation from stills, 3d from stills.... style
               | changes, etc.
               | 
               | LLMs are at least somewhat useful.
               | 
               | We can radically improve image and video compression with
               | performant enough AI.
               | 
               | Plenty of other applications of AI right now are already
               | useful or would be useful if inference were made more
               | efficient or more local (thus private). No more data
               | needed.
               | 
               | You don't need some grand vision of an AI future to get a
               | total addressable market for high performance AI that is
               | in the same ballpark as high performance GPUs for non-AI
               | usage.
        
               | Sparkyte wrote:
               | But for every business the chase seems to fail in finding
               | worth. I can already tell you from where I am working we
               | are struggling because eventually data is too old to be
               | good or too incomplete. We need at least 3-4 years of
               | collecting and storing the information to make full use
               | of AI.
        
             | PaulHoule wrote:
             | In practice it's the other way around.
             | 
             | In practice AMD and Intel GPUs should be suitable for
             | machine learning but the software story isn't good. I know
             | I can buy a NVIDIA card and know it's a good investment
             | because everything worth with CUDA and be training models
             | in less than a day. If I went with some other brand I'd
             | expect to put 6 man*months into figuring out the software
             | story, and that's a lot more than the price difference in
             | the cards.
             | 
             | I've been wondering about the soundness of Intel's software
             | strategy in that OneAPI ("One" is a bad smell in marketing
             | speak, the only premium product in my mind that has "One"
             | in the name is "Purina ONE" pet food, the XBOX ONE is an
             | astonishing own goal of a name because you'd never get your
             | mom to understand that an XBOX ONE is better than an XBOX
             | or XBOX 360) is based on OpenCL and the one thing I know
             | about OpenCL is that I don't know anyone who likes coding
             | for it. The idea that you could code for FPGA and GPU out
             | of the same API also seems delusional because FPGA is
             | (mostly) about latency and GPU is about throughput. That
             | is, FPGA can do certain small operations insanely fast and
             | avoid the overhead of 16-bit math when 13-bit math will do,
             | GPU is all about doing large operations in bulk.
        
               | bryanlarsen wrote:
               | > If I went with some other brand I'd expect to put 6
               | man*months into figuring out the software story, and
               | that's a lot more than the price difference in the cards.
               | 
               | Several companies are spending >$10B annually on AI
               | compute. There are a lot more than 6 man-months of
               | savings in it for them...
        
               | PaulHoule wrote:
               | One firm saving $2B saves $2B, open source software that
               | opens up the market for everyone is priceless.
               | 
               | A company like OpenAI that is mostly concerned about pace
               | might see going with the #2 GPU vendor is risky, even if
               | it has the possibility to save money.
        
             | ein0p wrote:
             | The whole situation with Intel and AI is also baffling to
             | me. They have an excellent product in this space - Gaudi2.
             | Faster than A100 and very attractively priced. I've tried
             | it, it works fine. Gaudi3 is also about to come out, and
             | it's twice as fast as Gaudi2. Yet nobody is buying. I get
             | why you wouldn't want this for training - it requires some
             | minor code modifications and your Triton kernels are
             | worthless. But for generative inference this is just what
             | the doctor ordered.
        
               | soulbadguy wrote:
               | > generative inference this is just what the doctor
               | ordered.
               | 
               | Naive question, wouldn't you need a descent tool chain
               | for inference as well ?
        
             | mlsu wrote:
             | The AI boom that lead to Nvidia's market position is still,
             | 3 years on, almost entirely speculative. The only products
             | that are currently driving value (i.e., that are providing
             | consumer surplus, for which businesses and individuals are
             | actually opening their checkbooks for) are paid chat-bots.
             | 
             | Nvidia ate the whole pie because they were in the right
             | place at the right time with shovels to sell. Getting into
             | it now, in house, would be a huge bet that the pot of gold
             | will be there when they get to the end of the rainbow --
             | and they have a long way to go.
        
               | Dalewyn wrote:
               | Intel actually has it even worse because they completely
               | failed to bring ARC to market in time. The product came
               | out (very) late, underdelivered, and permanently damaged
               | the brand reputation. Yes, the drivers and thus the cards
               | have gotten better, but who's talking about them now?
               | Noone.
               | 
               | They say the opposite of love is indifference, and
               | basically everything Intel has sold outside of CPUs and
               | NICs have suffered market indifference. Actually, maybe
               | even the NICs given everyone seems to prefer Realtek NICs
               | over Intel NICs these days.
               | 
               | Nvidia and AMD have it way better because if the market
               | doesn't love them, you bet the market will hate on them
               | instead of be indifferent.
        
         | Sparkyte wrote:
         | Intel has always been an echo chamber of fiscal earnings and
         | cutting corners to appease investors. For the longest time they
         | stagnated on Mac hardware improvements because it would cost
         | money, they would not have lost Mac as a business customer if
         | they continued to innovate.
        
           | PaulHoule wrote:
           | Also they should have had a policy of "not one transistor for
           | the national labs" and "not one transistor for hyperscalers",
           | particularly because anything they do to appease hyperscalers
           | just saves them money that they'll spend on their custom
           | silicon transition.
           | 
           | There's something prestigious about HPC but the story of how
           | commercial data processing went parallel in the oughts shows
           | how out of touch the HPC community is.
           | 
           | In the meantime Intel has botched the deployment of SIMD,
           | slowplaying to the point where maybe 7 or 8 years from now
           | some mainstream software might support AVX512, maybe.
           | Somebody should be tarred and feathered for introducing the
           | idea that features should be fused off for all but the
           | highest paying customers. If the customer is not paying for
           | the fused off functionality, the shareholders are. It sounds
           | really ruthless and avaricious and might impress some
           | business analysts as a form of vice signalling but it's pure
           | waste.
        
             | Sparkyte wrote:
             | Right it is wasteful. The reason some businesses are so
             | successful is that they look at the common denominators
             | rather than trying to perpetuate worth. Fewer variants and
             | don't wall off features. AMD did this for the longest
             | period getting back on it feet, but I am seeing a failure
             | of them continuing down this path. They need to stop making
             | variants and focus on 3 or 4 sets of consumer processors.
        
               | PaulHoule wrote:
               | Yep, "too many SKUs" killed off the consumer HDD a few
               | years faster than it had to die. If these companies had
               | focus groups that reached out to ordinary people they'd
               | realize it sounds absolutely incredible to most people
               | that you need one hard drive for a 3-5 bay NAS, another
               | for a 6-9 bay NAS, another if you are recording from
               | video cameras.
               | 
               | Even if there was a real benefit from optimizing firmware
               | and saving a few cents with cheap washers for drives in a
               | low vibration environment there is a much more certain
               | cost in that you have to qualify the firmware, risk
               | introducing errors, etc. I can imagine that Best Buy
               | might have been able to stock one model of high capacity
               | HDD but no way were they going to stock more colors of WD
               | drive than there are on the rainbow flag. That lack of
               | product sense locked manufacturers out of the retail
               | market.
               | 
               | (Makes me think of the cringe monthly hard drive roundup
               | in Anandtech where an enterprise drive produced in huge
               | numbers in a single SKU would usually be $80-100 cheaper
               | than prosumer drives that, according to the spec sheet,
               | consumed about 0.5W less and were about 3db quieter...
               | And I have plenty of those enterprise drives still
               | spinning after all these years, the only time I think
               | about the noise is when the machine boots and the drives
               | emit a throaty chirp that makes me think of a Ferrari
               | spooling up.)
        
             | mrandish wrote:
             | _> " Somebody should be tarred and feathered for
             | introducing the idea that features should be fused off for
             | all but the highest paying customers. If the customer is
             | not paying for the fused off functionality, the
             | shareholders are."_
             | 
             | This is very well put.
             | 
             | While I've always understood the economic motivation for
             | margin optimization and the technical reality that CPU
             | wafers aren't very granular, fundamentally, it's a long-
             | term losing idea to intentionally fab gates that don't add
             | end-user value. While it may work in the shorter-term, when
             | it becomes the plan of record (as opposed to fixing a one-
             | gen design or product mix error) it signals a shift to
             | prioritizing value extraction over value creation.
        
               | oivey wrote:
               | Even more simply, their goal stopped being making the
               | best product at the best price. Features that were fused
               | off could have made their products better for no extra
               | manufacturing cost. Your business is broken when you view
               | your products as being too featureful as a cost.
        
           | jzb wrote:
           | "they would not have lost Mac as a business customer if they
           | continued to innovate"
           | 
           | I'm not entirely sure this is true. I mean, I guess it
           | depends on whether one expected Intel to be able to make not
           | just a decent chip for PCs/laptops, but also one for phones &
           | tablets. Once Apple started dabbling in its own chips for the
           | iPhone and iPad, it seemed inevitable that they'd expand that
           | to their macOS systems too. Apple has been a rough customer
           | to please for chip designers/manufacturers, I'm not sure any
           | company could've satisfied them with a general-purpose chip.
        
             | hbn wrote:
             | If they played their cards right as the top dog ~20 years
             | ago, they could have perhaps ended up with the relationship
             | with Apple that TSMC does today.
        
               | talldayo wrote:
               | 1. Intel didn't have big fabs 20 years ago, so they
               | didn't have anything to offer Apple that would resemble
               | TSMC's partnership.
               | 
               | 2. There's no money in designing licensed CPU cores as a
               | middleman for a company that drives margins so low
               | they're associated with suicide nets and forced labor.
               | 
               | 3. If TSMC is lost due to Chinese aggression (which is a
               | non-zero chance), Apple is left fabless and has to choose
               | between importing Samsung silicon at-cost or partnering
               | with Intel.
        
               | PaulHoule wrote:
               | Might take them a few years to update their software to
               | run on the Samsung stack.
               | 
               | What are they going to do without all the auxiliary
               | processors they build in?
               | 
               | Or do they have a team which has their software working
               | on other people's silicon in case their supply chain get
               | blown up?
        
               | talldayo wrote:
               | Also, importantly, how hard will the US government be
               | taxing imports and propping-up Intel? I think that an
               | anti-Apple and pro-Apple administration would both want
               | them to stop shipping jobs offshore. There's a tariff
               | knob that can be adjusted until only Intel (or
               | GlobalFoundries, lmao) are feasible choices, and if the
               | US wants their Intel investment recouped then they may
               | well push for that kind of deal.
               | 
               | Personally, I find the "samurai's honor" shit where one
               | company avoids another to be childish and stupid. If you
               | make Apple's board choose between ending their grudge-
               | match or blowing up their margins, I don't think they'll
               | care much either. Or maybe I'm wrong, and the 2027 iPhone
               | is manufactured with 24nm wafers intended for the Toyota
               | Prius.
        
           | AtlasBarfed wrote:
           | Companies that are built on engineering eventually become
           | subsumed by soul-sucking profit sucking bonus sucking middle
           | management types that just plop themselves in their big huge
           | hierarchy and destroy the company long-term with inertia and
           | apathy.
           | 
           | See also. Boeing Medtronic GE AT&t
        
         | immibis wrote:
         | I have an Arc A770 and it seems to work fine so far... though
         | I've only had it for a month. There are some tolerable teething
         | problems: I can't set the fan curve from Linux so I had to duct
         | tape some extra fans, and it's incompatible with BIOS boot
         | (requires UEFI) which should be considered acceptable in 2024.
         | For presumably the same reason, there's no graphics output in
         | early Linux boot until the GPU driver is loaded.
         | 
         | The IGPU in my previous machine's i7-6700K (Skylake) was also
         | just fine. Intel Graphics Media Accelerator, yeah that really
         | sucked, but that was like 15 years ago?
        
         | samstave wrote:
         | Disclaimer: I used to work at Intel:
         | 
         | Specifically, I was the second person on the planet to game on
         | a Celeron Proc. How? Me and my best friend ran the Intel
         | Developer Relations Group Gaming Test Lab in the later half of
         | the 90s.
         | 
         | Our job was to specifically test all PC games that were being
         | developed against the Intel Celeron procs and the amd alts...
         | with a focus on Subjective Gaming Performance of the Celeron as
         | an "Optimized" feature leader whereby developers were given
         | handsome marketing monies to optimize the games against latest
         | SIMD instructions to allow for the games to be more performant
         | on the Celeron.
         | 
         | THe goal: Show the world that a $1,000 fully capable gaming PC
         | was possible, in their budget, and _desirable_.
         | 
         | ---
         | 
         | The Issue at the time was the graphic bottlenecks -- all the
         | pieces had yet to come to fore: AGP, Unreal, OpenGL, ~~NERDS~~
         | NURBS!, Games, Graphix Chips (VooDoo, 3DFX, blah blah)
         | 
         | Celeron should have died long ago - but certainly when the
         | first, actual GPUs came along and did the heavy lifting.
         | 
         | I have a lot of thoughts about Intels mess (Transmetta really
         | fucked Intel up in the way an abusive step-relative would) and
         | caused them to lose focus...
         | 
         | Then, just the ridiculous amount of marketing over
         | engineering....
         | 
         |  _(if anyone worked at intel in the DRG circles in SC5 - and
         | has access to emails of that day - search my name and the
         | thread I started asking why we cant just physically stack CPUs
         | on top of eachother... (this was prior to the Voxel timeline)
         | and was laughed at. it wasnt until several years after that I
         | went on a hike with a labs head and found out about the 64-core
         | text CPUs that were only coming out)_
         | 
         | ---
         | 
         | I was just having shower-thoughts about intels future as
         | effectively computing _grout_ -- a mechanism to get data from
         | real-world INTO NVIDIA GPUs and then displayed again real-
         | world. And thats it. Thats the only thing Intel may be doing in
         | the future - is grout to display the data components solely
         | computed, as NVIDIA CEO stated himself  "All compute will be
         | done on NVIDIA chips" -- _delivery_ of the data through intel
         | 's grout (minimally) then again delivered to an NVIDIA desktop
         | GPU...
         | 
         | Intel is like the maintenance staff of a home. NVIDIA is the
         | architect, interior designer, party planner and end user.
         | 
         |  _(Intel was my first ever stock package: $70 with a $125
         | option price. 10K shares. I left before ever vesting... it was
         | the late 90s and I had to chase the dream
         | intc:https://i.imgur.com/U9PWURv.png )_
        
         | spookie wrote:
         | Having a third competitor in the GPU is great, for both Intel
         | and the consumer. If one starts blaming newcomers for their
         | shortcomings then we are failing to see the bigger picture.
         | 
         | When you talk about web browsers failing to display content
         | because of the iGPUs I fail to even have heard of such a case.
         | Maybe the performance is bad but that's it. Either way, that's
         | more of a failure of the OS and not Intel. Windows is
         | particularly biased to not use your dGPU on a laptop, but I
         | blame the kernel for making badly calculated assumptions based
         | on nothing but !={game, 3D modelling tool} then iGPU, and not
         | the hardware.
        
       | kjellsbells wrote:
       | The classic moat metaphor that the OP article and others use
       | needs to be fleshed out to match Intel's predicament.
       | 
       | A moat protects a castle that adversaries want to take over. The
       | presence of the castle defines what can and cannot be done with
       | the surrounding landscape. But if the castle ceases to protect
       | what people care about, or make meaningful additions to the
       | environment, it becomes irrelevant and the presence of the moat
       | makes no difference.
       | 
       | Intel's problem isn't that competitors want to storm the castle
       | and achieve domination over the landscape that x86 controls. It's
       | that the competition have built their own castles on the other
       | side of the river, and a lot of the peasants are tilling the
       | lands around Castle ARM and Chateau NVIDIA.
       | 
       | To put it another way, Intel thought the castle was "control of
       | computing" and the moat was "leadership in x86" but irrelevance
       | comes a little closer with each passing chip generation. It is
       | fortunate for Intel that corraling an ecosystem into existence
       | around the alternatives to x86 is an insanely difficult task, but
       | it has been done with ARM, it has been done (albeit for a niche)
       | with NVIDIA and it can be done again with whatever comes next.
        
         | soulbadguy wrote:
         | >Intel's problem isn't that competitors want to storm the
         | castle and achieve domination over the landscape that x86
         | controls.
         | 
         | IMO it's both. While the importance x86 is declining, AMD is
         | aggressively eating what ever part of it is left. I also think
         | that in the long term, as intel and amd build better x86 chips,
         | the value proposition of ARM will slowly fade in favor of
         | something like risc-v
        
           | apantel wrote:
           | Asking because I don't know: what is the value proposition of
           | ARM?
        
             | selimnairb wrote:
             | In PCs, ARM CPUs perform just as good or better than AMD64
             | but have much better battery life. In the cloud, ARM CPUs
             | are much cheaper (ca. 25% less) for the same or better
             | performance.
        
               | soulbadguy wrote:
               | Not quite. I think we need to split the value of ARM the
               | instruction from specific implementation.
               | 
               | 1 - In term of pure efficiency, nothing magical about
               | ARM. Looking at AMD latest strix laptop platform they are
               | about on par with qualcomm new arm laptop chips.
               | 
               | Apple M* CPU are still better. However, a lot of that
               | efficiency is platform derived.
               | 
               | 2 - The lower cost in the cloud is a function of the
               | middle man being removed. Amazon is selling graviton
               | cheaper simply because they don't have to pay the markup
               | of AMD or Intel.
        
             | adrian_b wrote:
             | The value of ARM is that anyone with enough money can
             | license Arm cores and incorporate them in their own
             | products, which can be optimized for some custom
             | applications.
             | 
             | The level of customization possible with an x86 CPU is much
             | less. You must buy a complete computer board or module and
             | incorporate it in your product.
             | 
             | While for custom applications it is easy to create a
             | superior solution with Arm cores, for general-purpose
             | computers it is hard to compete with the Intel and AMD
             | CPUs. All the computers with Arm cores have worse
             | performance per dollar than similar x86 computers. (For
             | instance there was recently a thread on HN about a credit-
             | card-sized computer with an Intel N100 CPU and with the
             | same price or lower as a Raspberry Pi, but with a much
             | higher performance.)
        
               | klelatti wrote:
               | You've missed out one of Arm's central value propositions
               | which is power efficiency and the reason why it has more
               | than 99% of the smartphone market.
        
               | adrian_b wrote:
               | There have been tons of proprietary CPU architectures
               | with the same power efficiency as Arm. Only the x86
               | architecture is an outlier that requires an unusually
               | complicated instruction decoder, which may degrade a
               | little the energy efficiency.
               | 
               | Arm has eliminated most of the competing CPU
               | architectures not by providing better power or energy
               | efficiency, but by its business model of being licensable
               | to anyone.
               | 
               | The ARM ISA was somewhat better than MIPS and SPARC, both
               | of which have been handicapped by including some
               | experimental features that have been later proved to be
               | bad ideas. However there have been many other RISC ISAs
               | more or less equivalent with ARM. Only the business model
               | has extracted ARM from the crowd, not its technical
               | advantages.
        
               | klelatti wrote:
               | You're conflating the characteristics of the ISA with the
               | value proposition offered by the designs using it. Not
               | the same at all.
               | 
               | Other historical architectures typically targeted higher
               | performance.
               | 
               | Arm specifically went after low-power applications, which
               | continues today when we see the priorities in the design
               | of Arm and x86 cores, for example.
        
               | soulbadguy wrote:
               | It's been said many time and the correlation between ISA
               | and power efficiency have been debunked many time. ARM is
               | power efficient because most ARM implementation are power
               | efficient. Right now x86 AMD strix are about on par with
               | qualcom x elites
        
               | klelatti wrote:
               | Agreed. That power efficiency is still a central part of
               | the Arm value proposition though. Others are competing
               | with real designs on this with Arm in laptops but not in
               | - for example - smartphones.
        
               | adrian_b wrote:
               | Arm "specifically went after low-power applications" only
               | in comparison with x86 or in comparison with a few other
               | architectures restricted to workstations and servers,
               | like DEC Alpha or Intel Itanium.
               | 
               | Before 2000, there were at least a dozen CPU
               | architectures that went for the same low-power
               | applications as Arm. There were a lot of microcontroller
               | or processor vendors and each one of them had at least
               | one proprietary ISA, if not 2 or 3 or even more different
               | proprietary ISAs.
               | 
               | More than 20 years ago, I have redesigned various kinds
               | of communication equipment, in order to replace many
               | other kinds of CPUs, for example Motorola MC683xx or
               | ColdFire or IBM PowerPC CPUs, with Arm CPUs.
               | 
               | In none of those cases the Arm CPUs had a lower power
               | consumption or any other technical advantage. In fact in
               | all cases the Arm CPUs were technically inferior to the
               | CPUs replaced by them, which has required the
               | implementation of various hardware and software
               | workarounds.
               | 
               | There was only one reason why the Arm CPUs had been
               | selected to replace their predecessors with different
               | architectures, and that was the lower price. Their lower
               | price was in great part due to the fact that there
               | already were many competing vendors of Arm CPUs, so if
               | you did not like one of them it was easy to replace it
               | with another vendor.
        
               | AlexDragusin wrote:
               | Radxa X4 low-cost, credit card-sized Intel N100 SBC goes
               | for $60 and up
               | https://news.ycombinator.com/item?id=41007348
        
               | hypercube33 wrote:
               | AMD does offer custom x86 - see the steam deck, surface
               | laptops and Xbox and PS4 and 5. Given there aren't a ton
               | of small fish making custom parts they are excellent at
               | what they are made for.
               | 
               | AMD is pushing x86 to Apple ARM levels that keep power
               | use low enough (best I've seen is 16 hour battery life on
               | a device - I think MacBooks best this still) but
               | performance per watt I haven't seen ARM really top
               | charts. They are awesome and I want arm and risc-v to
               | really shine in laptops but the only player on the PC
               | side is Qualcomm who was told to destroy their only
               | flagship by ARM.
        
               | soulbadguy wrote:
               | > AMD does offer custom x86
               | 
               | Not the same thing. On X86 you have to pay AMD or intel
               | to design something for you.
               | 
               | In arm, you get to decide who design your chip or even
               | have your own in house CPU design team.
        
             | NortySpock wrote:
             | (simplifying) ARM provides verified, tested, standardized,
             | reasonably well designed chips (logic circuits) that your
             | company can purchase a license for and then send that chip
             | design / logic circuit to be etched on a wafer, cut,
             | encapsulated, and soldered to a printed circuit board.
             | 
             | Those ARM CPUs support a standard (but ARM-flavored)
             | assembly programming language. (Formally: Instruction Set
             | Architecture)
             | 
             | Designing your own chip previously was risky because you
             | might have logic or hardware bugs in your chip that were
             | very hard to debug, and then you hope that someone will
             | bother to write assembly code that works on your chip.
             | Since you probably designed your own assembly language that
             | co-evolved with your chip, those assembly code developers
             | are going to be sinking a lot of time into understanding
             | your chips and assembly code quirks to wring performance
             | out of them.
             | 
             | RISC-V standardizes a RISC-V flavored assembly code (ISA)
             | and also provides some certification test packages to prove
             | that "this particular chip design" can execute the RISC-V
             | assembly language according to specifications.
        
         | moffkalast wrote:
         | AMD's stormed the castle with Ryzen long ago and planted their
         | flag, but since everyone's still asleep at Castle Intel they
         | haven't really noticed.
        
       | causal wrote:
       | The article quotes a mention of Intel getting into the foundry
       | business - this seems like the most obvious good move to make,
       | even if a little late, right?
       | 
       | Being able to operate a general fab for chips seems far more
       | important now than the design of the chips, since design has been
       | somewhat commoditized by ARM. Any big downside for this move?
        
         | barkingcat wrote:
         | the downside is that the foundry process has to work properly,
         | and by all reports, it hasn't started working properly yet.
        
           | causal wrote:
           | Only report I saw on it was that Intel said they have tested
           | working 18A chips.
        
             | sct202 wrote:
             | They have to be able to mass produce on that node for it to
             | save them. Samsung has been claiming technological
             | leadership for that past few years with their 3nm node but
             | nothing has come to market using it. IBM demoed a 2nm test
             | chip in 2021, but has no ability to mass produce.
        
       | BadHumans wrote:
       | We are coming up on 7 years since the first Ryzen chip. In 7
       | years AMD went from very behind to a little behind then on-par
       | and finally now market leader. The fact Intel let this happen in
       | such a short time frame is a bit mind boggling.
        
         | layer8 wrote:
         | AMD is not the market leader in any segment, by any
         | approximation:
         | https://www.theregister.com/2024/05/10/amd_gains_on_intel/
        
           | BadHumans wrote:
           | My phrasing is confusing and I apologize for that. I do not
           | mean market leader in that there are more AMD CPUs than Intel
           | CPU. I'm speaking about hardware performance.
        
             | layer8 wrote:
             | You are right for multi-core performance, but Intel has
             | still a slight edge in single-core performance, and in idle
             | power usage, which is important to many. Intel also has a
             | stronger offering in the now-popular mini PC segment.
        
           | adrian_b wrote:
           | In server CPUs, Intel still has a larger market share than
           | AMD, but judging for the published financial results, where
           | most of the loss is in server CPUs, Intel has succeeded to
           | keep that diminishing market share only by accepting a great
           | loss caused by huge discounts, which has determined the
           | action price fall, so perhaps trying so hard to retain the
           | market share has not been an optimal decision.
           | 
           | So AMD definitely leads over Intel from the POV of the
           | profits obtained in the server CPU market segment.
           | 
           | There are also various small markets where AMD leads
           | comfortably over Intel by volume, e.g. Amazon currently sells
           | much more AMD CPUs than Intel CPUs.
        
         | nasdaq-txn wrote:
         | Market leader in what? Intel's Q2 revenue is over double that
         | of AMD's. Intel still controls well over 60% of the x86 space.
         | Intel and AMD's most performant x86 offerings are fairly close
         | to each other.
        
           | BadHumans wrote:
           | Performance. Intel still manages to squeak out some wins
           | against AMD when it comes to single-threaded CPU task but in
           | every other metric, they are chasing AMD.
        
             | adrian_b wrote:
             | Not only in performance, but also in profits, as shown by
             | the Intel vs. AMD financial results. Especially in the
             | server CPU market segment, where Intel has a diminishing
             | market share and losses of billions, while AMD has an
             | increasing market share and profits.
             | 
             | The new Zen 5 has much better single-thread performance
             | than any Intel CPU (e.g. the slower 5.5 GHz Zen 5 launched
             | this week matches a 6.0 GHz Raptor Lake), so for a couple
             | of months, until Intel launches Arrow Lake S, AMD will have
             | much better single-thread performance. After that, Intel
             | and AMD will be again at parity, with negligible
             | differences in ST speed.
        
       | debatem1 wrote:
       | Intel's main problem is its people. Sorry to say.
       | 
       | The management culture there is insanely siloed and toxic, full
       | of scar tissue from previous periods of political turmoil and a
       | few relentless sociopaths who absolutely will not stop climbing
       | just because it's obviously damaging to the company.
       | 
       | The engineering culture is full of secrets, moats, and the
       | general sense that while making progress might be your job,
       | stopping it is _everyone 's_ job. And there are always more of
       | them than there are of you.
       | 
       | Perhaps most fatally, responsibility for decisionmaking is
       | ultimately delegated to the process of decisionmaking rather than
       | the people involved. The resulting proliferation of checkboxes
       | and box checkers have elevated dysfunctions like "the perfect
       | being the enemy of the good" and "none of us is as dumb as all of
       | us" into de facto mottos for large parts of the company.
       | 
       | All of this happens against the backdrop of eroding mind and
       | marketshare, a total lack of real product clarity, and a
       | pervasive culture of bullshit that puffs politically convenient
       | non-accomplishments into events worth of companywide applause
       | while spinning, downplaying, or even hiding bad news of
       | calamitous import.
       | 
       | Intel has vast reserves of talent but without deep (IMO,
       | impossible) cultural changes it will inevitably fail under its
       | own weight.
        
         | age1mlclg6 wrote:
         | I had to create an account to say that I agree with this
         | comment.
         | 
         | I am a former Intel engineer who worked there for 8 years. I
         | left Intel 2 years after the ACT mass layoff in 2016.
         | 
         | The culture there is extremely toxic from top to bottom. The
         | VP's and top level executives were out to get stocks and golden
         | parachutes. The middle managers played politics. In addition,
         | they also pulled a blind over leadership on many significant
         | happenings. The engineers / technicians kept secrets as a way
         | of keeping themselves relevant and valuable in case of layoff
         | events.
         | 
         | The main and sole money maker for Intel is getting quality
         | silicon out of the door and that should be the number one
         | objective for everyone. However, due to stack ranking, that is
         | getting as many bullet points as possible in order to appear
         | relevant when it comes annual review or mass layoff events,
         | many people come up with bullshit projects that while on the
         | surface look extremely impressive, have nothing relevant to
         | pushing quality silicon out. The middle managers play favorites
         | and push or highlight those bullshit projects.
         | 
         | When they fly expensive executives around for the BUM's
         | (Business Update Meetings) or to pitch some bullshit ideas, not
         | many had the courage to ask the relevant questions. The few who
         | asked them were met with canned and non-informative responses
         | that only showed that these expensive suits had no awareness of
         | what was going on externally. At the same time, we were too
         | busy patting ourselves on the back, claiming that we were
         | number one.
         | 
         | We were too busy playing political games and competing
         | internally that we forgot about the real external competitions,
         | and then it was too late and they zoomed right past us.
         | 
         | I doubt the CEO (past and present) or VP's care or even have an
         | inkling on what has been going on in the culture.
        
       | einpoklum wrote:
       | I don't know, a lot of these explanations seem more like reading
       | astrological maps in hindsight. Example:
       | 
       | > _Intel passed on making the System on Chip for Apple's new
       | iPhone, Instead Apple used an Arm designed processor in an SoC
       | built by Samsung. Too late Intel realised the mistake._
       | 
       | Mistake? AMD didn't even try to build SoCs to compete with ARM /
       | Qualcomm / etc. They seem to be doing ok.
       | 
       | Now, you could say "Well, throwing 10^10 USD on trying to build
       | an SoC was the mistake" - maybe, but then it's the opposite
       | mistake than the article claims.
        
         | klelatti wrote:
         | No it was a both a huge mistake and a symptom of underlying
         | problems. Making smartphone SoCs is a huge profitable market
         | that would have given Intel massive volumes to support R&D etc
         | and slowed TSMC. The fact that they couldn't manage it with
         | every apparent advantage is very telling.
        
           | talldayo wrote:
           | Feels like you're rewriting history, to me. Smartphone SoCs
           | are _not_ hugely profitable, and a big point of the past 10
           | years were Chinese manufacturers entirely ignoring ARM IP to
           | increase profits. The only people that make money off ARM
           | hardware are the export-officiated manufacturers that don 't
           | pay per-unit licenses; which is exclusively Apple. Nobody
           | else has a more permissive ARM architecture license, not even
           | Nvidia.
           | 
           | Intel at the time was fabless, would have needed to license
           | or design a RISC architecture, and would have ended up just
           | as squeezed as any other part of Apple's supply chain. And if
           | Intel made a serious profit, Apple would have replaced them
           | anyways. It's an all-risk-no-reward scenario.
        
             | klelatti wrote:
             | > Intel at the time was fabless
             | 
             | ????????!
        
           | soulbadguy wrote:
           | > Making smartphone SoCs is a huge profitable market that
           | would have given Intel massive volumes to support R&D etc and
           | slowed TSMC.
           | 
           | Not quite, and that's the core of the "innovator" dilemma.
           | The reason why intel passed on making SOC, is the same why
           | nvidia decided to pass on getting into xboxss and
           | playstations. Those market have much lower margin than server
           | side business.
           | 
           | AMD, and TSMC can operate in those space because they are
           | much more efficient companies, intel is not.
           | 
           | Intel got addicted to fat server CPU margin, grew
           | inefficient...
        
       | talldayo wrote:
       | > Intel couldn't break into smartphone SoCs with clear process
       | leadership and the financial strength to invest heavily. Why
       | should it be able to break into other competitive markets today
       | when it no longer has those advantages?
       | 
       | Maybe because you're looking at it backwards? There must be some
       | conspiracy among Softbank investors to portray everyone that
       | doesn't pay for ARM licenses as a Muppet. Intel has no
       | competitive advantage manufacturing licensed RISC CPUs when their
       | desktop and server markets are hot, and even when x86 dies it
       | will still be less attractive than owning fabs. With how bad the
       | Cortex designs continue to be and how much leeway ARM gives
       | licensees like Apple, even businesses like Qualcomm can't be
       | bothered to take the ISA seriously. It feels disingenuous to say
       | ARM is the panacea when designing ARM cores would have left Intel
       | in an even worse position.
       | 
       | Look at Samsung; a company people on this site would describe as
       | misery incarnate, but chances are they're typing their comment
       | from a device using Samsung-fabbed silicon. They're not even that
       | competitive either; they just offer a cheap alternative to TSMC
       | that offers OEMs an economically-minded option for less dense
       | components.
        
         | klelatti wrote:
         | > It feels disingenuous to say ARM is the panacea when
         | designing ARM cores would have left Intel in an even worse
         | position.
         | 
         | Sorry, where does the article say Intel should design Arm cores
         | in 2024?
        
       | 42lux wrote:
       | They just slept for a decade... I had an overclocked i7 3970k
       | (2012) and there was no need to update for 8 years. The
       | perfomance increase was always marginal. I finally pulled the
       | trigger when AVX happened.
        
       | scotty79 wrote:
       | I'm buying PCs for myself for three decades and never chose Intel
       | for my build (apart from the Pentium 133 in my first pc
       | computer). Every time I considered it but alternative was just
       | significantly cheaper option at power levels that interested me.
       | 
       | The only Intel's I got were in laptops where I was interested
       | only about the price of a whole PC that interested me for other
       | reasons than CPU.
       | 
       | Since Internet became a thing I choose CPU by downloading price
       | and benchmark results, drawing price/power chart and choosing a
       | point on a good edge of a point cloud that's not unreasonably
       | expensive. It never happened to be Intel.
        
       | projektfu wrote:
       | I think referring to bankruptcy is excessive. Intel bulls might
       | be going bankrupt, but the share price doesn't affect most
       | companies unless their only reasonable way to raise money is
       | through the stock market. The Intel bond yields are not too high
       | yet.
       | 
       | The question then becomes, is this a low (trading around book
       | value) with recovery in the future, or is it the beginning of a
       | long, dark time, leading to an inability to raise money down the
       | line?
        
       | theparanoid wrote:
       | Intel's decline was obvious when I worked for them in 2010, their
       | compensation package wasn't competitive with FANG and they
       | consistently missed out or lost their better engineers.
        
       | gumby wrote:
       | The "paradox of the x86" is simply the classic Innovator's
       | Dilemma. In fact the history of the last 20 years against ARM
       | could be a case study right out of the book.
       | 
       | Worse for Intel, AMD flubbed it time and time again, but now
       | Intel is too weak to defend against a resurgent AMD.
       | 
       | Meanwhile they are cutting headcount deeply yet only now
       | suspended the dividend. Madness!
       | 
       | They should take a page out of AMD's book and spin off fab. That
       | new company can then be flooded with "strategic" government aid,
       | and maybe the rest of intel can catch up (or not) but it would at
       | least give the shareholders a better chance. Right now the
       | combination is acting like two anchors tied together.
        
       | sargun wrote:
       | I feel like Intel has embarked upon a bunch of good ideas like
       | SDI (https://www.intel.com/content/www/us/en/manufacturing/softwa
       | ...), IoT / Edison (https://ark.intel.com/content/www/us/en/ark/p
       | roducts/84572/i...), Silicon Photonics (https://www.intel.com/con
       | tent/www/us/en/products/details/net...), and SDN
       | (https://www.intc.com/news-events/press-
       | releases/detail/640/i...).
       | 
       | But, they manage to fail to capitalize on any of these. What's
       | wrong with them?
        
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