In an email to CRN, Intel says it would not be going ahead with plans to offload its Network and Edge Group, also known as NEX, after all.
Intel on Wednesday revealed that it would be holding onto its networking business.
The company confirmed it would not be spinning off its Network and Edge Group, also known as NEX, to CRN five months after Intel sent a memo to customers and employees that said it would be seeking outside investment for the business unit.
“After a thorough review of strategic options for NEX—including a potential standalone path—we determined the business is best positioned to succeed within Intel. Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings across AI, data center, and edge,” a spokesperson for Intel said in an email to CRN.
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The July memo that first outlined plans to establish key elements of the Networking and Communications business as a stand-alone company was written by Sachin Katti, the leader of NEX since 2023. In April, he was given the extra role of chief technology and AI officer by Intel CEO Lip-Bu Tan, but Katti left the company in November for ChatGPT creator OpenAI.
The NEX spin-off plan was revealed on the same day the semiconductor giant revealed more changes under Tan’s leadership, including a 15 percent workforce reduction and a more conservative approach to its foundry business.
Intel in 2024 moved its edge computing business out of NEX and into the Client Computing Group. The company also shifted its integrated photonics solutions to the Data Center Group at the same time.
“We remain focused on delivering for customers and creating long-term value,” the Intel spokesperson said.
Dylan Martin contributed to this report.
