Intel Corp (chipmaker) has almost $3.5 billion from its GPU department. As a result, analysts believe that the company might be thinking of shutting down that department for good.
The loss of $3.5 billion has accumulated for several years and is not something that happened overnight. Although Intel is an old company in the chipmaking business, its GPU division was still a new one. The main focus of this division was the development of different GPU products.
The main product of Intel is the CPUs which form a basic unit of the traditional computers. But for graphics, other companies dominate the GPU market, such as AMD and NVIDIA.
AXG Group Yet To Make A Profit
According to estimates, the AXG group in Intel caused a collective loss of $3.5 billion for the company. In fact, the company has yet to make any profits for Intel despite massive investment.
If this report is indeed true, then it would mean that another big market has become out of reach for Intel. Despite enjoying massive success in its chipmaking business, the company couldn't dent the GPU market.
Back in the day, the company also refused to make processors (CPUs) for smartphones. This led other groups to dominate the smartphone processors market, and Intel missed the train once again.
Earlier, the company also solid a 5 G-based mobile model to the Apple Company. Now, it seems that the company is ready to part ways with its GPU division.
According to experts, it makes sense for Intel to close down its GPU department since it is not making any profits. Ever since the inception of AXG group, the company has only lost money in the form of investments while seeing nothing in the form of earnings.
In fact, some people are even calling the GPU division a kind of embarrassment for the company.