Intel CEO Lip-Bu Tan Overhauls Leadership, Appoints New AI Chief in Bid to Streamline Chipmaker's Future

Santa Clara, CA — April 19, 2025 : Intel Corp.’s new CEO Lip-Bu Tan is wasting no time implementing bold organizational changes as he seeks to reverse the chipmaker’s recent struggles and sharpen its competitive edge in artificial intelligence and semiconductor manufacturing.

In an internal memo obtained by Reuters, Tan revealed a significant flattening of Intel’s leadership structure, directing key chip divisions to report directly to him. The reorganization marks Tan’s first major move since taking the helm last month and signals a hands-on leadership style aimed at restoring innovation and efficiency.

AI Leadership Realigned: Sachin Katti Promoted

Among the most notable changes, Intel has promoted Sachin Katti—previously head of its networking chip division—to the dual role of Chief Technology Officer and Chief Artificial Intelligence Officer. Katti will lead the company’s revamped AI roadmap, oversee Intel Labs, and manage relationships with AI startups and developers. His promotion comes as Intel intensifies its efforts to rival Nvidia’s dominance in AI chip technology.

Katti, also a Stanford professor, replaces Greg Lavender, who is retiring. His expanded role comes just months after Intel scrapped development of its Falcon Shores AI chip, a move that underscored the company’s need for a unified, forward-looking AI strategy.

A Leaner, Engineering-Focused Intel

Tan’s memo reflects his broader vision for Intel: a lean, engineering-driven organization with fewer bureaucratic hurdles. The restructuring removes management layers and gives direct access to engineering insights—moves designed to revitalize a company long criticized for slow decision-making and missed market opportunities.

Intel’s personal computing and data center AI chip groups will now report directly to Tan, bypassing previous executive layers. Michelle Johnston Holthaus will retain her role as head of Intel Products but with added responsibilities yet to be detailed.

Tan emphasized a cultural reboot: “It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win,” he wrote. “New ideas are not given room or resources to incubate.”

Global Affairs and Political Landscape

In a time of escalating global trade tensions, Intel is also seeking a new head of government affairs. This role will report directly to Tan and focus on navigating geopolitical complexities, including U.S.-China relations. The outgoing head, Bruce Andrews, left after the 2024 U.S. elections.

This transition comes as Intel faces scrutiny for its venture ties to China, even as former President Donald Trump’s administration has imposed tariffs affecting the chip supply chain. Tan’s streamlined structure may help Intel remain agile in the face of mounting regulatory and supply chain pressures.

Technical Leaders Elevated

Tan’s memo also elevated three senior technical leaders—Rob Bruckner, Mike Hurley, and Lisa Pearce—who will now report directly to the CEO. This shift underscores a renewed commitment to technical excellence and innovation at the executive level.

Tan concluded: “This supports our emphasis on becoming an engineering-focused company and will give me visibility into what’s needed to compete and win.”

Looking Ahead

The changes come at a critical moment for Intel, as it works to regain ground lost to competitors like Nvidia and AMD in both AI and high-performance computing. Tan’s decisive leadership and restructuring could represent a turning point for the iconic Silicon Valley company as it reinvests in technical talent and innovation.