The biggest news of the holiday weekend dropped on Monday. Pat Gelsinger has retired from Intel, effective immediately. David Zinsner, CFO, and Michelle Johnston Holthaus, newly named CEO of the Intel Product subunit, have been named as Co-CEOs while the board searches for a permanent member. Gelsinger has been the CEO since 2021. He has been focused on returning Intel to dominance in the chip market while also facing headwinds from industry transitions to mobile and AI computing. Intel stock prices rose on the news. This and more on The Gestalt IT Rundown.
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1:14 – AWS Announces Nova AI Models
Amazon kicked off re:Invent with a bang, introducing a range of new AI models under the Nova brand. These next-generation models, available on Amazon Bedrock, offer capabilities like text, image, and video processing using generative AI algorithms.
Read More: Introducing Amazon Nova, our new generation of foundation models
5:35 – UK Company Bails on Broadcom Due to 1,000% Hike
UK-based Beeks Group, a cloud operator, announced this week that they are moving over 20,000 virtual machines from VMware to OpenNebula. This represents the majority of their virtual infrastructure. The reason for the move was a 10x increase in licensing costs according to Head of Production Matthew Cretney. The move has resulted in double the efficiency of managing the server infrastructure. The move comes amid changes to the VMware portfolio that have seen introductions of lower cost alternatives to VMware Cloud Foundation.
Read More: Company claims 1,000 percent price hike drove it from VMware to open source rival
9:36 – Chinese Say US Chips No Longer Safe
Chinese chipmakers have urged companies in the country to begin buying locally because US chips are no longer considered safe. The announcement comes after recent moves to restrict exports of technology and chips to China as the US relationship becomes frosty. There has been a bit of back-and-forth with sanctions and retaliations in the past couple of months. What was missing from the annoucement was any specificity about what made the US chips unsafe suddenly. China has recently banned exports of rare minerals needed for advanced manufacturing and today the US administration banned the sale of certain high-bandwidth memory (HBM) to buyers in restricted countries.
Read More: US chips are ‘no longer safe,’ Chinese industry bodies say in latest trade salvo
Read More: Biden Targets China’s Chip Industry With Wider Trade Bans
14:20 – EnGlobal Fighting Cyberattack
In an 8-K filing on Monday, energy sector services company EnGlobal said they are fighting a cyberattack and have restricted access to their systems. The incident occurred on November 25th and was reported inside the SEC window for these kinds of notifications. The attack appears to be encrypting files. EnGlobal does not have a timeline for full restoration of their systems. This incident follows a previous one oat the end of October that targeted another energy industry company, Newpark Resources.
Read More: US government contractor ENGlobal says operations are ‘limited’ following cyberattack
17:49 – Intel Forced to Control Their Own Fabs for CHIPS Cash
Before we take a look at the news of Pat Gelsinger’s retirement as Intel CEO, we have a smaller detail that came out Friday. $7 billion of the CHIPS Act funding that Intel is set to receive requires that Intel maintain control over their foundry operations. Intel must have 50.1% ownership and/or voting rights in the foundry business either directly or in a spin-out situation. The move is seen as a way to ensure that Intel does not take the money and run, so to speak, and continues to invest in their foundry operations over the long term.
Read More: Fine print in Intel’s CHIPS Act deal includes requirement to keep control of its foundries
21:52 – Pat Gelsinger Retires from Intel
The biggest news of the holiday weekend dropped on Monday. Pat Gelsinger has retired from Intel, effective immediately. David Zinsner, CFO, and Michelle Johnston Holthaus, newly named CEO of the Intel Product subunit, have been named as Co-CEOs while the board searches for a permanent member. Gelsinger has been the CEO since 2021. He has been focused on returning Intel to dominance in the chip market while also facing headwinds from industry transitions to mobile and AI computing. Intel stock prices rose on the news.
Read More: Intel Announces Retirement of CEO Pat Gelsinger
36:50 – The Weeks Ahead
AWS re:Invent – December 2 – 6, 2024
AI Field Day 6 – January 29 – 30
Gestalt IT and Tech Field Day are now part of The Futurum Group.
The Gestalt IT Rundown is your look at the IT news of the week. Be sure to subscribe to Gestalt IT on YouTube for even more weekly video content.
