Intel CEO Lip-Bu Tan revamps leadership, boosts AI focus, and streamlines operations to drive innovation and compete with Nvidia.

According to an Intel memo reviewed by Reuters, the semiconductor giant's new CEO, Lip-Bu Tan, is flattening the executive structure by assigning key chip areas to him directly. The report claims that Sachin Katti, the head of networking chips, has also been promoted by Intel to the roles of chief technology officer and chief of artificial intelligence.

After years of issues, Tan took over as CEO this month, and the leadership changes represent the first significant step in turning around the legendary Silicon Valley chipmaker. He will receive direct reports from Intel's data center, AI chip group, and personal computer chip group. Michelle Johnston Holthaus, the current CEO of Intel products, was in charge of them before, and she will continue to manage them in new capacities.

Tan's shakeup comes after a long period of unrest at Intel in Santa Clara, California, where he had promised a faster-moving style for the legendary American chipmaker. The former CEO had resigned last year after arguing with the board of directors over measures to revitalize the company after years of failed manufacturing and product experiences. The emergence of Nvidia as the leading provider of AI chips is one of the main issues.

Given the significance of government affairs in the complex global context, Intel is looking for a new head of government affairs who will also answer to Tan, wrote the CEO. Bruce Andrews, the predecessor, left Intel after the U.S. elections in November. He had previously served in the Commerce Department under the administration of the former president Barack Obama.