Intel CEO Lip-Bu Tan is under scrutiny now that several transactions in which he had a personal financial interest coincide with the chip giant’s strategic initiatives.
This was reported by Reuters. According to various parties involved, Intel has actively approached companies in which Tan participated as an investor in recent months, while at the same time being responsible for assessing acquisition and investment opportunities within Intel.
One of the most notable cases concerns AI startup Rivos. Tan (photo) was both chairman of the board and a shareholder there, while he convinced Intel to engage in intensive talks with the company. Attempts to complete an acquisition initially failed because Intel’s advisory board identified him as a party with a direct interest.
The situation changed when Meta showed interest and made an offer. The ensuing bidding war drove Rivos’ valuation to about double previous internal estimates. Meta ultimately bought the company, but insiders say Tan’s position gave him an indirect financial advantage.
A similar dynamic played out in the case of SambaNova, an AI hardware company where Tan had previously become chairman of the board. SambaNova was struggling with declining revenues and an increasing need for new financing.
Although the company struggled to close the next round of investment, Intel was asked to consider a strategic scenario. Sources report that a non-binding letter of intent for a potential transaction is now in place, though both parties are keeping their cards close to the vest.
New internal policy
Within Intel, Tan’s dual role led to new internal policies. He must now recuse himself from decisions in which he may have a personal interest. In practice, responsibility for such investment decisions has shifted to CFO David Zinsner, who reports directly to Tan. Critics note that this only partially strengthens independence, although Intel emphasizes that it strictly monitors transactions that may involve conflicts of interest.
Nevertheless, the board of directors continues to have confidence in Tan. The company is counting on the extensive network he has built up as an investor in hundreds of technology companies. According to insiders, the board sees his connections as crucial to steering Intel back toward growth and relevance, especially now that the company is trying to overcome significant financial setbacks for the first time in years.
Despite the doubts, Intel has been in a stronger financial position since Tan took office. The stock price has risen significantly, and major players such as Nvidia and SoftBank have stepped in as investors.