$23.2 billion in Lost Graphics: Intel to Ditch GPU Division, says Analyst
The announcement of Intel's entry into the niche market was greeted with great anticipation. However, some doubts have been raised as the DG1 has been delayed and the DG2, also known as the Arc, has been delayed in mass delivery.
Jon Peddie, head of JPR, a GPU-focused research firm, has even gone so far as to say that Intel should consider closing or selling its graphics division.
He gives a set of numbers,Intel has spent $3.5 billion (23.2 billion) on standalone graphics over the past five years, and its graphics division, AXG, lost $2.1 billion in the past year. Even so, Intel has no competitive graphics cards in any market segment.
Jon Peddie points out that Intel CEO Pat Kinzinger is aggressively restructuring the company's business, selling off six businesses -- baseband, flash memory, drones, and Outgo -- and that AXG could be the next to go at a 50-50 chance.
The Intel Arc A5/A7 and others are still on the way, but the problem is that they are coming too late. While the A750 can take on the RTX 3060, it will eventually have to face leap-ahead competitors like the RTX 40 and RX 7000 series.