👉 Background: Intel is a global tech company that started in 1956 and became a household name in the 1980s and 1990s. Millions of PCs around the world used Intel's computer chip.

👉 What happened: After struggling in the 2000's, a new CEO took the helm in 2021 to turn Intel around. But now, Intel plans to lay off 15,000 employees this year and pause dividend payments as part of a big cost-cutting exercise.

👉 What else: On top of that, Intel has posted a loss of $1.6 billion for the second quarter. And it's all because Intel has struggled to gain a foothold in the market for artificial-intelligence chips, and fallen behind the likes of Nvidia and other rival chip makers.

What's the key learning?

💡Over the last few years, with the boom in generative AI, there's been a brutal race in the chip industry - some of it visible, some of it not.

💡The AI boom has led to new challenges for Intel, which has the dominant market share in the traditional category of central processors, but it is far behind the big dogs for the more modern AI chips.

💡Intel's AI chips are expected to bring in about $500 million USD of revenue this year, way below the more than $20 billion USD Nvidia has been pulling in each quarter. But, Intel is hoping its new chip-making technology, which it expects to be in production next year, will help turn its fate around.