Intel CEO and board member Pat Gelsinger (pictured) resigned following a three-year push to revive the chip company’s flagging fortunes in the face of increased competition from companies such as Nvidia.

EVP and CFO David Zinsner and Michelle Johnston Holthausm, CEO of Intel Products, have been named interim co-CEOs while the company conducts a search for a permanent replacement.

Frank Yeary, independent chair of the board of Intel, is serving as interim executive chair.

“While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence,” Yeary stated.

He explained the board realises “first and foremost that we must put our product group at the centre of all we do”.

Intel was caught flat-footed in the race to develop AI processors and has not been able to close ground on rivals Nvidia and AMD.

Gelsinger’s first stint at Intel started in 1979, according to his LinkedIn profile. Following a 30-year career, he joined Dell’s EMC in 2009 as its president and COO before taking over as CEO of VMware in 2012.

His more recent attempts to revive Intel included a major restructuring and cost-cutting initiative announced in September and a multi-billion-dollar deal with Amazon Web Services to manufacture AI chips.

Following dismal Q2 2024 results, it outlined a plan to cut 15 per cent of its workforce by year end as part of multi-billion dollar cost saving effort designed sharpen the company’s business focus.

Last month, the US government reduced the company’s chip funding while Qualcomm reportedly cooled its interest in a potential buyout of Intel.