Longtime Intel Corp. executive Navin Shenoy is leaving the company amid a restructuring of one of its most critical groups and the creation of two new business units.

The changes were announced in a memo by new Intel Chief Executive Pat Gelsinger, who only joined the company in February. The CEO, a former longtime Intel exec himself, revealed plans to split Intel’s Data Platform Group, one of its largest businesses in terms of revenue, into two smaller units.

As a result, Sandra Rivera will lead the new Datacenter and AI group, which will be responsible for the company’s Xeon central processing units, field-programmable gate arrays and artificial intelligence products. Rivera is a veteran at Intel, having joined the company in 2000, previously serving as head of Human Resources and its Network Platforms Group.

Gelsinger said Rivera has deep experience with data center technology and a track record of integrating the company’s silicon and software portfolios.

The new Network and Edge Group will be led by Nick McKeown, who will join the company on a full-time basis next month. McKeown, who co-founded Barefoot Networks prior to its 2019 acquisition by Intel, had been serving as a part-time fellow at the company. The Network and Edge Group will merge Intel’s Network Platforms Group, Internet of Things Group and Connectivity Group into a single business that Gelsinger said will be chartered to “drive technology and product leadership through the network to the intelligent edge.”

“Nick is widely recognized as one of the world’s leading technologists in networking, having founded five different networking companies and received more than 25 industry awards, including this year’s IEEE Alexander Graham Bell Medal,” Gelsinger said.

Shenoy (pictured), who currently runs the data center chip business, will stay on to help with the transition before departing on July 26. He is a well-known face at Intel, having served there for more than 26 years in a variety of senior executive roles, including head of the Client Computing Group that makes central processing unit chips for laptops.

“It will be interesting to see where Shenoy goes next,” said analyst Charles King of Pund-IT Inc. told SiliconANGLE “In other circumstances, he would have been a logical choice for the role that Gelsinger now holds. Shenoy’s departure is understandable and whatever company he chooses will be lucky to have him.”

The other two business units being created today include a software-focused division called the Software and Advanced Technology Group, to be led by former VMware Inc. Chief Technology Officer Greg Lavender. There’s also a new supercomputing and graphics business, which will be known as the Accelerated Computing Systems and Graphics Group. Raja Koduri, whom Gelsinger described as “a well-known innovator in GPU computing technology,” will head up that business.

“[Koduri] has shouldered several critical roles for Intel over the past few years,” Gelsinger added.

Reuters reported that Koduri’s group will be tasked with competing directly with rival firm Nvidia Corp., which has gained ground on Intel in the data center thanks to the rising importance of AI in business applications.

Nvidia’s graphics processing units are particularly well suited to intensive AI processing tasks. Further, Nvidia has gained an advantage over Intel by giving software developers the tools they need to write custom code for its chips. Lavender’s newly created group will likely be tasked with creating similar software tools to help developers to write apps specifically for its chips, Reuters said.

Intel is facing immense pressure from a growing number of rivals besides Nvidia. For instance, the company has also lost ground in mobile chips to competitors such as Arm Ltd., which Nvidia has announced plans to acquire, and Qualcomm Corp. Meanwhile, its dominance of personal computers has been threatened by the rise of Advanced Micro Devices Inc.

Analyst Patrick Moorhead of Moor Insights & Strategy told SiliconANGLE that in light of these realities, Gelsinger’s decision to restructure the business and reshuffle his leadership pack was not a surprise.

“Every new CEO changes organizations once the figure out what they want to accomplish,” he said. “Gelsinger said he wanted to elevate tech talent and wanted to get great at software again and his actions indicate this is what he is doing.”

As far as the restructuring of the business goes, Moorhead said a flatter organization is likely a smart move at this juncture because it will enable faster decisio-making and execution.

That much was reiterated by Gelsinger. “By putting Sandra, Raja, Nick and Greg – with their decades of technology expertise – at the forefront of some of our most essential work, we will sharpen our focus and execution, accelerate innovation, and unleash the deep well of talent across the company,” he said.

King said today’s announcements are evidence of Gelsinger’s strategic mindset and indicate how he plans to move the company forward.

“The steps-up for Rivera and McKeown were well-deserved, and the pair should do well in leading two of Intel’s most important organizations,” King said. “The new business units will focus on areas that are vital to the company’s future, and getting Lavender and Koduri to lead them is a coup for Gelsinger. Both are terrific hires.”

Holger Mueller of Constellation Research Inc. said the changes were a good sign for Intel and that they show Gelsinger wants to run a more nimble and agile company.

“He is leaving the client computing and non volatile memory solutions groups in place as they are busy and working at the moment,” Mueller said. “The future will tell if the new smaller business divisions can perform better than the previous data center and data groups, but for now, good luck to the new executives in charge.”

Rivera, McKeown, Lavender and Koduri will all report directly to Gelsinger.

Photo: Intel