Intel decides not to sell network division after all

"Intel will retain its Networking and Edge (NEX) division after reviewing its strategic options. The chip giant had considered selling various parts of the business, but has now concluded that keeping NEX in-house offers advantages for the integration of hardware, software, and systems. Intel announced on Wednesday that the networking group will remain within the company. The decision is based on an evaluation of the strategic options for various business units."

"This seems to mark the end of Intel's downsizing for the time being. After rounds of layoffs and the divestment of other divisions, such as the venture capital arm, the company must now prioritize the remaining divisions. There are still many of them, and it remains to be seen whether they will actually receive the investments needed to remain competitive. Consider the GPU division for both data centers and consumer PCs, where Intel had just made a cautious start after previous flops."

"During the presentation of the third-quarter figures, CFO Dave Zinsner pointed to an improved liquidity position. This is easily explained. Over the summer, Intel secured an investment of $8.9 billion from the US government for a 10 percent stake. In addition, $2 billion came in from SoftBank Group and $5 billion from Nvidia. According to Intel, retaining NEX will benefit customers. By keeping the networking group within the company, it can achieve closer integration between silicon, software, and systems."

Intel decided to retain its Networking and Edge (NEX) division to enable closer integration of silicon, software, and systems, strengthening offerings for AI, data centers, and edge computing. Earlier plans to spin off NEX and talks with Ericsson about a minority stake have ended and a spin-off is no longer planned. The company completed rounds of layoffs and divestments and must now prioritize remaining divisions, including GPU efforts for data-center and consumer PCs that have seen cautious restarts after previous flops. CFO Dave Zinsner cited an improved liquidity position after investments: $8.9 billion from the US government for a 10 percent stake, $2 billion from SoftBank Group, and $5 billion from Nvidia.

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