The Billion-Dollar Conflict: How Intel CEO’s Dual Role as Investor is "Getting Messy"

December 2025 – In the high-stakes world of semiconductor manufacturing, the line between corporate strategy and personal investment is becoming increasingly blurred at Intel. A recent report highlights growing scrutiny over CEO Lip-Bu Tan, whose dual identity as the head of the chip giant and a prolific venture capitalist is creating complex conflict-of-interest scenarios—most notably involving a failed $4 billion bid for an AI chip startup.

The Two Hats of Lip-Bu Tan

Lip-Bu Tan, who took the helm as Intel’s CEO in March 2025, has long been a titan in the tech investment world. His supporters argue that his deep connections and portfolio of hundreds of chip-sector investments provide Intel with invaluable foresight into industry trends. However, this unique position has also tested the boundaries of corporate governance.

According to TechSpot, the tension came to a head this past summer when Tan pitched Intel’s board on acquiring Rivos, an AI chip startup. The complication? Tan was sitting on both sides of the table: he was the CEO of the buyer (Intel) and the Chairman of the target (Rivos).

The Rivos Saga and Meta’s Win

Sources familiar with the matter revealed that Intel’s board rejected Tan's initial proposal to buy Rivos, citing a clear conflict of interest and skepticism regarding the acquisition's strategic value for Intel’s AI roadmap.

Despite the board’s hesitation, the situation escalated into a bidding war. When Meta (Facebook's parent company) showed interest in Rivos, Intel countered with its own bid. This competition drove Rivos’ valuation from $2 billion to nearly $4 billion. Ultimately, Intel retreated, and Meta announced its acquisition of Rivos in September.

The outcome created an awkward optic: while Intel lost out on the deal, Rivos' investors—including Tan’s own venture firm, Walden Catalyst—celebrated a massive payout.

Consolidating Power at Intel Capital

The report indicates that Tan’s influence has reshaped Intel’s internal investment arm, Intel Capital. Upon becoming CEO, Tan reportedly reversed plans to spin off the division, instead bringing it under his direct authority. The investment committee was notably significantly reduced to just two members: Tan himself and CFO David Zinsner.

Since this restructuring, Intel Capital has participated in funding rounds for companies linked to Tan’s personal investment portfolio. One cited example is proteanTecs, a chip telemetry firm where Tan holds shares through his other investment vehicles, Celesta Capital and A&E. Sources inside Intel suggest there has been internal pressure to prioritize portfolio companies where the CEO has a vested interest.

Governance Under the Microscope

Intel has defended its governance practices, asserting an "unwavering commitment to integrity." The company states that procedures are in place requiring Tan to recuse himself from decisions where he has a personal interest, with authority passing to the CFO in such instances.

However, the frequency of these recusals is rising. Beyond Rivos, reports suggest Tan also explored an acquisition of SambaNova Systems, another company where he served as executive chairman.

While corporate governance experts note that such conflicts are not automatically damaging—and can indeed grant a company access to better deals—others argue that the risk could be better managed. Suggestions include placing Tan’s outside holdings in a blind trust or assigning oversight to an independent committee.

As Intel continues its efforts to regain market share and recover from significant financial losses in 2024, the "messy" overlap of its CEO’s personal and professional interests remains a critical narrative to watch.

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Source: Based on reporting by TechSpot, December 2025.