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Pat Gelsinger retired as Intel CEO effective December 1, 2024, and left the company’s board. Intel first installed interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus; Lip-Bu Tan became CEO on March 18, 2025. The handover came as Intel pursued a costly recovery, and later results show both manufacturing progress and continuing financial strain—not a settled verdict on whether the turnaround will succeed.
Why did Pat Gelsinger leave Intel?
Intel announced Gelsinger’s retirement on December 2, 2024, saying he had stepped down from the board as well as the CEO role, effective the previous day. The company did not publicly establish that he was forced out, so the departure should not be described as a board ouster based on the available statements.
The timing mattered: Intel was trying to improve its competitive position and make its manufacturing business more viable while facing significant financial pressure. The Associated Press, reporting on the announcement on December 2, 2024, cited a $16.6 billion company loss in the most recent quarter it discussed. That contemporaneous company-wide figure is distinct from Intel Foundry’s operating loss reported for fiscal 2025.
Who replaced Gelsinger as Intel CEO?
The succession happened in two stages. Intel named Chief Financial Officer David Zinsner and Michelle (MJ) Johnston Holthaus, then head of its Client Computing Group, interim co-CEOs when it announced Gelsinger’s retirement. On March 12, 2025, Intel announced that Lip-Bu Tan would become CEO effective March 18, succeeding the interim leaders. Tan said, “I am honored to join Intel as CEO.”
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What was Gelsinger’s turnaround plan?
In a September 16, 2024 message to employees, Gelsinger framed the recovery around three linked priorities: improving Intel Foundry’s momentum and capital efficiency, lowering costs, and sharpening Intel’s product competitiveness in x86 and AI.
- Make manufacturing economics work better. Gelsinger called for greater capital efficiency and a stronger foundry business as Intel approached the launch of Intel 18A.
- Reduce costs. He said Intel needed a more competitive cost structure and to deliver a $10 billion savings target announced the prior month. That was a target, not a statement that the savings had already been achieved.
- Refocus products. He called for strengthening the x86 franchise, advancing the AI strategy, and streamlining the product portfolio for customers and partners.
Intel also announced an expanded AWS collaboration in September 2024. The plan included an AI fabric chip intended for Intel 18A and a custom Xeon 6 chip intended for Intel 3. These were announced plans at the time; the announcement alone does not establish that the chips were later delivered.
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What happened to Intel’s turnaround after Gelsinger left?
Intel’s later disclosures provide evidence of execution, but they do not by themselves settle the larger question of recovery. The company reported high-volume manufacturing of Intel 18A products at fabs in Arizona and Oregon by the end of 2025. That is a manufacturing milestone; it is not proof on its own that the foundry business had become profitable or that Intel’s turnaround was complete.
Manufacturing progress and financial results are different measures
For the fiscal year ended December 27, 2025, Intel reported $17.826 billion in Intel Foundry revenue, including $307 million in external revenue, and an operating loss of $10.318 billion for the segment. Intel said most foundry activity still supported manufacturing Intel’s own products. The total revenue therefore should not be read as revenue from outside customers: the reported external portion was much smaller.
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| Measure | Intel’s reported figure | What it shows |
|---|---|---|
| Intel Foundry revenue, fiscal year ended December 27, 2025 | $17.826 billion | Segment revenue, most of which Intel said supported its internal product manufacturing. |
| External Intel Foundry revenue, same fiscal year | $307 million | Revenue from external customers, a small share of the segment total. |
| Intel Foundry operating loss, same fiscal year | $10.318 billion | The segment remained loss-making despite the reported manufacturing milestone. |
Taken together, the disclosures show why neither a single factory milestone nor a single segment loss is enough to pronounce the turnaround a success or a failure. High-volume 18A manufacturing indicates operational progress; the fiscal 2025 foundry figures show substantial losses and a limited external-revenue base. Intel’s longer-term recovery depends on how those pieces develop over time.
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