Chipmaking giant Intel Corp. announced today it has hired former Hewlett Packard Enterprise Co. executive Justin Hotard as the new executive vice president and general manager of its key Data Center and AI Group.

The new exec, who is regarded as a specialist in artificial intelligence and high-performance computing, will be tasked with boosting Intel’s market share in the growing AI hardware industry.

Hotard (pictured) replaces Sandra Rivera, who stepped back from leading the Data Center and AI unit to assume the role of chief executive at Intel’s new Programmable Solutions Group. The company announced in October it was spinning off that unit into an independent business, in preparation for an initial public offering that’s slated to come in two to three years.

It’s a key hire for Intel, which faces challenges in almost every area of the chipmaking industry. But none is seen as more important than the AI chip segment, where rival Nvidia Corp. has emerged as the most dominant player with its graphics processing units that power generative AI systems such as ChatGPT.

The company also faces increased competition from Advanced Micro Devices Inc., which has become stronger than ever thanks to the capabilities of its EPYC processors that are used in data center servers. In addition, there are plenty of new players in the industry, such as Ampere Computing LLC, that offer Arm-based chips for cloud servers. Added to that, some of Intel’s biggest customers, such as Google LLC and Amazon Web Services Inc., are designing their very own central processing units for data center workloads.

As competition in the chip industry heats up, Intel itself has become much more diversified, expanding into different areas. For instance, its Xeon CPUs are designed to handle far more workloads than before, while it also offers its own GPUs for AI and HPC applications, as well as its Gaudi AI accelerators.

As the leader of Intel’s Data Center and AI Group, Hotard will be asked to boost the company’s prominence in the red-hot AI industry in order to capture a bigger share. It’s a vital market for Intel, as many analysts believe it will expand significantly in the coming years, and perhaps become the most important segment of the semiconductor industry.

Intel Chief Executive Pat Gelsinger said Hotard is a “proven leader” and boasts an impressive track record in driving growth and innovation in the data center and AI industries. “Justin is committed to our vision to create world-changing technologies,” the CEO said. He added that he’s also “passionate about the critical role Intel will play in empowering our customers for decades to come.”

Hotard most recently held the position of executive vice president and general manager of HPE’s AI and HPC business unit. In addition, he led that company’s AI research efforts in his role as the head of Hewlett Packard Labs. Prior to joining HPE, he served as the president of NCR VOYIX Corp. He has also served at companies including Motorola Mobility LLC and Symbol Technologies Inc.

The decision to hire an outsider to take over the running of such a vital business unit comes as a surprise, and some might say it calls into question the company’s confidence in its existing executive bench. That said, Hotard has performed well in his role at HPE, helping to grow its AI and HPC business unit’s revenue to $1.18 billion in the quarter ending Oct. 31, up from $862 million a year earlier.

In an interview with SiliconANGLE’s mobile livestreaming studio theCUBE in November, he emphasized his belief in the importance of on-premises AI workloads, as opposed to AI powered by cloud servers.

A report from CRN suggests that Intel’s ability to snatch Hotard away from HPE is a “huge coup” for the company, at a time when big tech firms are engaged in an increasingly fierce battle to snap up the hottest AI talent.

C.R. Howdyshell, CEO of Advizex Technologies, told CRN that companies are now engaged in a talent war, competing with one another to hire the limited number of executives and technologists with experience of AI. “It’s a challenge to get AI talent, which is why you are also going to see acquisitions of AI companies,” he said.

Photo: SiliconANGLE