Intel Sells Arm Holdings Stake, Raises Over $140 Million as Its AI Chip Development Lags Behind Rivals

Intel has sold its share stake in British chip company Arm Holdings, generating over $140 million based on Arm's average stock price. Intel struggles to keep up with competitors like AMD, Qualcomm, and Nvidia in developing high-performance chips optimized for AI workloads.  Intel is undergoing a major restructuring and cost-cutting effort. The company plans to cut around 15,000 jobs, eliminate its fiscal fourth quarter dividend, and reduce capital expenditures as part of a cost reduction plan. Its manufacturing operations have also lost market share to TSMC and Samsung, and it is working to grow its chip foundry business.