TNB Tech Minute: Intel's CEO Already at Odds With Board - Tech News Briefing

Wall Street Journal

4 days ago

Full Transcript
This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.
Julie Chang: Here's your morning TNB Tech Minute for Friday, August 8th. I'm Julie Chang for The Wall Street Journal. We exclusively report that Intel's CEO Lip-Bu Tan has been at odds with his board over the company's strategy in his first few months leading the tech giant. According to people familiar with the matter, Tan and some Intel directors have clashed about whether the company should stay in the manufacturing business or exit it entirely. Yesterday, those tensions were heightened when President Trump unexpectedly called for Tan's ouster, claiming the CEO is conflicted by business ties to China. In a statement to the Journal, Intel said its board and management team are aligned on the company's strategy. SMIC, China's largest chipmaker, said U.S. tariffs should continue to have a limited impact, since domestic demand is increasing sharply and overseas clients are better prepared for the headwinds. The company's domestic market accounted for 84% of its revenue in the second quarter, while the U.S. accounted for just under 13%. That's down from 16% a year earlier. But SMIC reported an almost 20% decline in net profit due to production fluctuations. Shares fell nearly 8%. And Meta Platforms has settled a defamation lawsuit with conservative activist Robby Starbuck. Starbuck alleged the company's artificial intelligence chatbot falsely asserted he participated in the January 6th Capitol riot. Under the settlement, Starbuck will advise the company on removing political bias from its AI tools. Staying on Meta, its new team devoted to building machine superintelligence is now called TBD Lab. The group is spearheading work on the latest version of its Llama large language model. And that's your TNB Tech Minute. Join us again this afternoon for more.