Intel Just Rewired the Chip and the Rules of Artificial Intelligence

Intel introduced PowerVia, a design shift the company calls nothing less than a revolution. Photo: Intel
Intel introduced PowerVia, a design shift the company calls nothing less than a revolution. Photo: Intel
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Intel Just Rewired the Chip and the Rules of Artificial Intelligence

Intel introduced PowerVia, a design shift the company calls nothing less than a revolution. Photo: Intel
Intel introduced PowerVia, a design shift the company calls nothing less than a revolution. Photo: Intel

In the blistering heat of the Arizona desert, Intel staged a quiet revolution. At the Intel Technology Tour 2025 in Phoenix, the company didn’t just unveil new processors. It revealed a plan to rebuild the foundations of computing itself.

This wasn’t a spec-sheet update. It was the kind of pivot that comes along once in a generation, one that could rewrite how artificial intelligence is powered, trained, and trusted.

At this invite-only event, where Asharq Al-Awsat was the sole Arabic media presence from the Middle East, Intel showed off technologies that don’t merely shrink transistors but re-imagine how electricity and intelligence flow through silicon.

The Day Power Flipped
“For the first time in semiconductor history, we’re moving power delivery to the backside of the chip,” said James Johnson, Intel’s senior vice president and head of client computing, as he introduced PowerVia, a design shift the company calls nothing less than a revolution.

He wasn’t exaggerating. Instead of channelling energy through the maze of wires on top of a processor, PowerVia feeds it directly from behind, shorter paths, less resistance, fewer losses. The result: chips that run 30 percent more efficiently and 10 percent denser than before.

Paired with Intel’s new 2-nanometer RibbonFET transistors, the technology anchors Intel’s audacious roadmap: “Five nodes in four years.” By 2026, the company wants to reclaim the lead it ceded to TSMC and Samsung in advanced manufacturing.

“What we’re seeing,” said Stephen Robinson, one of Intel’s senior fellows, “is an unprecedented convergence between architectural innovation and manufacturing maturity.”

In other words, it’s not just about how small the chip gets, it’s about how smart it becomes.

Beyond the Shrink
For decades, the semiconductor race was about scale: who could pack more transistors into less space. But Robinson insists the game has changed.

“It’s no longer about shrinking the transistor,” he told Asharq Al-Awsat. “It’s about rethinking how every element works together to reach efficiencies no one’s seen before.”

Intel calls this philosophy System Technology Co-Optimization, or STCO. It’s engineering meets orchestration: physics, logic, and AI co-designed in a single loop. Think of it as turning the chip into a living ecosystem, not a static piece of silicon.

Robinson calls this moment a “once-in-a-lifetime opportunity” for the industry, a rare alignment of physics, data, and human ingenuity.

The AI Inside Everything
If the chip is the body, then AI is the brain now wired into it.

According to Thomas Petersen, Intel’s senior fellow for architecture and graphics, the company’s next move is about making every processor think collectively—a symphony of CPU, GPU, and NPU working as one organism.

“We’re designing processors to think together, not separately,” Petersen said.

“The days of each chip doing one job are over.”

The star of this new generation is Panther Lake, Intel’s 2026 platform for the AI PC. By weaving neural processing directly into the CPU, your laptop becomes a stand-alone AI engine, running tasks locally, instantly, and privately without the cloud on constant call.

“The goal isn’t just to get an answer from a smart model,” Petersen said. “It’s to get it instantly, privately, and with minimal energy. That’s the philosophy of the next intelligent computer.”

The shift marks a turning point from “assisted intelligence” to “active intelligence.” The PC won’t just help, it will collaborate. Users will work side-by-side with autonomous AI agents that analyze, plan, and respond in real time.

“We’re building chips that understand the meaning of data,” Petersen said, “not just calculate it.”

When AI Becomes a Colleague
At a session titled Gemini Enterprise AI, Intel described the next stage of enterprise computing: Agentic AI, systems that don’t just support humans but work alongside them.

“AI is no longer a tool,” said one speaker. “It’s a co-worker.”

Intel’s idea of Agentic Work Environments envisions teams of human employees and AI agents collaborating, making decisions, and even negotiating outcomes within secure, governed frameworks. The glue that holds it all together? Trust—not as a software patch, but as hardware architecture.

“Autonomous agents can behave unpredictably,” said an Intel security engineer. “That’s why trust must live in the silicon itself.”

To enforce that trust, Intel upgraded its Trusted Execution Environment (TEE) and hardware isolation systems, ensuring that AI models run inside encrypted, quarantined zones. In an era where synthetic content and model-to-model interaction are exploding, Intel sees this as the first line of defence in the new AI frontier.

Hyper-Connectivity: The Nervous System of AI
Fast intelligence is meaningless without fast connection.

At the “Wireless Innovations” session, Intel engineers previewed Wi-Fi 8, 5G Advanced, and early glimpses of 6G. It is a future where every connected device becomes a mini data center, processing information locally with near-zero latency.

“The edge,” said one network architect, “is the new frontier for AI. The next models won’t just live in the cloud; they’ll live in the world around us.”

That world includes the Middle East. From NEOM’s digital twins to autonomous transport grids across Saudi Arabia and the UAE, the region’s smart-city projects rely on the kind of ultra-low latency and reliability Intel is building into its chipsets and modems.

The New Metric: Sustainability
Even in a week obsessed with speed, sustainability was the quiet headline.
“Efficiency isn’t just performance per watt,” said Tim Wilson, Intel’s vice president of design engineering. “It’s responsibility per watt.”

Intel now recycles over 95 percent of its water, pursues zero-waste fabs, and designs chips that literally waste less power inside themselves. PowerVia doesn’t just make circuits cleaner, it makes computing greener.

“In the age of AI,” Wilson said, “sustainability isn’t optional. It’s a design constraint.”

That ethos mirrors the Middle East’s own goals: energy-efficient cities, renewable-powered data centers, and carbon-neutral digital growth under Saudi Vision 2030 and the UAE’s Net Zero agenda.

A New Connection with the Middle East
Though Phoenix was the stage, the conversation kept circling back to the Gulf.
Saudi Arabia is investing billions into AI, cloud infrastructure, and sovereign data centers laying the groundwork for a future semiconductor industry of its own. Intel, sensing the region’s momentum, has begun collaborating with Gulf universities and research labs on chip design and AI engineering.

A senior Intel official confirmed ongoing talks with sovereign wealth funds on potential partnerships for advanced packaging and local manufacturing projects.

The subtext: the Middle East isn’t a spectator in the AI race, it’s a stakeholder.

Making AI for Everyone
Perhaps the most radical idea at Phoenix wasn’t technical, it was social.

Intel wants to democratize AI. Through its Gaudi3 and Gaudi4 accelerators, the company is offering a low-cost alternative for training massive models up to 50 percent cheaper than rival platforms.

“AI shouldn’t be a luxury item,” an Intel executive said. “It should be like electricity, accessible, reliable, and sustainable.”

That principle could reshape emerging tech ecosystems, especially in places like Saudi Arabia, where national AI strategies hinge on local innovation. Affordable compute means universities and startups can train their own models, rather than rent power from global giants, a leap toward digital sovereignty.

The Hidden Infrastructure of Trust
As AI grows more autonomous, the question isn’t what it can do, it’s who decides what it should do.

Intel’s answer lies deep in the chip’s DNA.

“We used to protect data,” one Intel researcher told Asharq Al-Awsat. “Now we protect behavior. When models can make decisions, you need silicon that understands trust.”

The company is developing digital IDs for AI agents, encrypted model training, and physical data isolation layers, technologies increasingly vital for sectors like defence, energy, and finance.

In the Gulf, this vision echoes work by SDAIA, Saudi Arabia’s Data and AI Authority, which is crafting a national framework for AI governance and safety.

Both share the same core belief: trust isn’t a checkbox; it’s an engineering discipline.

A Legacy Reinvented
By the end of the Phoenix tour, one thing was clear: Intel isn’t just trying to win the AI race. It’s trying to redefine what leadership looks like in an era where machines think, learn, and act.

Intel sees itself as “the custodian of computing’s evolution” the thread connecting the first microprocessor to the age of autonomous intelligence.

“We stand at the intersection of physics, logic, and imagination,” Robinson said in his closing remarks. “That’s where the future of intelligence, human and artificial, truly lies.”

Petersen added a line that could have come straight from Wired’s own manifesto:

“The future of AI is too big to be locked behind closed walls. Our role is to empower everyone, from startups to governments to build on our technology.”



Alibaba Shares Slide after $10.2 Billion AI Share Sale Offered at Sharp Discount

FILE PHOTO: An Alibaba logo is displayed at the company's booth at China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 10, 2025. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: An Alibaba logo is displayed at the company's booth at China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 10, 2025. REUTERS/Maxim Shemetov/File Photo
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Alibaba Shares Slide after $10.2 Billion AI Share Sale Offered at Sharp Discount

FILE PHOTO: An Alibaba logo is displayed at the company's booth at China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 10, 2025. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: An Alibaba logo is displayed at the company's booth at China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 10, 2025. REUTERS/Maxim Shemetov/File Photo

China's Alibaba shares slumped in Hong Kong trade on Monday after it launched a $10.2 billion share sale at a steep discount to fund its AI ambitions, with investors focused on stock dilution and execution risks.

The e-commerce and cloud computing giant said it would sell HK$80 billion ($10.2 billion) of new shares at HK$112.70 each, an 8.4% discount to Friday's close, to fund chips, AI infrastructure and models.

AI has become Alibaba's biggest driver of revenue growth at a time when e-commerce growth is stagnating, and its Qwen AI models are some of the most popular in China. Even so, some investors have reservations about how successful it will be.

"Alibaba's DNA is in e-commerce, not advanced tech," said Yang Tingwu, vice general manager of asset manager Tongheng Investment.

"No matter how much it invests in AI hardware, it will likely be outmaneuvered by competitors in tech innovation."

Its Hong Kong shares fell as much as 10.5% but pared losses in the afternoon to trade in line with the discount offered.

The sale of 710 million ordinary shares is equivalent to 3.6% of enlarged total shares outstanding.

It drew strong demand, attracting $28 billion of orders, including $6 billion from long-only and sovereign investors, three people with knowledge of ⁠the matter said.

About ⁠40% of the book will go to long-only and sovereign investors, including major sovereign wealth funds in Europe, Asia and the Middle East, two of the people said.

Investors included the Qatar Investment Authority (QIA), Norway's Norges wealth fund and Hillhouse, according to one person.

Alibaba, Hillhouse, QIA and Norges did not immediately respond to Reuters requests for comment.

Alibaba chairman Joe Tsai bought 720,000 Hong Kong shares at an average price of HK$112 apiece, for about HK$80 million in aggregate, while Eddie Wu, the group's chief executive, bought 350,000 Hong Kong shares at an average price of HK$111.6 per share, totaling HK$40 million, according to the group's stock exchange disclosures later on Monday.

As the US and China vie for tech supremacy, investment in AI and related infrastructure such as data centers ⁠has reached dizzying heights.

The biggest Chinese AI names are, however, investing only a fraction of what their US counterparts are spending. Most fundraising globally is also conducted via heavy debt issuance — a trend that has begun to test the limits of investor demand. Japan's SoftBank on Monday announced it would issue $6.3 billion in bonds to retail investors — its biggest debt offering to date.

Alibaba's stock sale is the largest-ever follow-on offering of new shares by a Hong Kong-listed company and the third-largest globally this year after offerings of nearly $85 billion from Alphabet and $20 billion from Intel.

"Alibaba's placement — landing alongside massive capital raises by Alphabet and Intel in the US — proves that American and Chinese tech giants are operating off the exact same strategic playbook," said Winston Ma, an adjunct professor at NYU School of Law and former head of North America for sovereign wealth fund China Investment Corp.

"The global sovereign investors aren't blind to US-China tech friction — they are compartmentalizing it," Ma said, adding that they were more comfortable with compliance issues when investing in Chinese commercial cloud and open-weight AI plays over restricted semiconductor hardware.

Capital Group, one of the world's largest active investment managers, estimates that AI-related capital expenditure by the biggest US hyperscalers — Microsoft, Amazon, Alphabet, ⁠Meta and Oracle — reached $791 billion as of ⁠July 31. That compares with $118 billion for China's ByteDance, Alibaba, Tencent and Baidu.

Part of the reason for the more subdued Chinese spending has been a lack of access to Nvidia's most advanced AI chips due to US export controls. That in turn has pushed Chinese firms to develop more efficient AI models and infrastructure that require less computing power and capital.

The share placement comes a week after Alibaba reported quarterly net profit that tumbled 75% from a year earlier, primarily due to AI-related spending.

Underscoring how AI has leapt to become a key priority, Alibaba this year separated its AI operations from its cloud business, with the new unit to be led by CEO Eddie Wu.

In addition to positioning itself as a key AI partner for companies operating in China, it is preparing a listing of its chipmaking arm T-Head and developing AI agents linking services across its sprawling ecosystem, including shopping, food delivery, travel and entertainment.

Separately, Alibaba has helped train a large language model that Apple will sell in the Chinese market, sources have said.

At earnings, Alibaba said it had committed nearly half of its three-year capital expenditure plan of 380 billion yuan ($56.5 billion), but that AI computing investments have a "high certainty" of returns.

Wu said such investments are expected to break even within three years, possibly even 2.5 years, as margins improve and proprietary chips replace third-party hardware.


Taiwan Indicts Nine Over Alleged Illegal Export of AI Servers to China

People walk past a Taiwanese flag in New Taipei City on January 13, 2024. (AFP)
People walk past a Taiwanese flag in New Taipei City on January 13, 2024. (AFP)
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Taiwan Indicts Nine Over Alleged Illegal Export of AI Servers to China

People walk past a Taiwanese flag in New Taipei City on January 13, 2024. (AFP)
People walk past a Taiwanese flag in New Taipei City on January 13, 2024. (AFP)

Taiwan prosecutors said on Monday they indicted nine people, including employees of Nvidia and Super Micro, accused of illegal export of artificial intelligence servers to China.

Semiconductor powerhouse Taiwan is the world's largest producer of advanced chips used in AI applications. Prosecutors this year investigated the suspected ‌illegal export of ‌servers equipped with Nvidia ‌chips ⁠subject to US export ⁠controls.

Washington has imposed curbs since 2022 making it illegal for such semiconductors to be exported or sold in China.

In a statement, the prosecutors in the northern ⁠port city of Keelung said the ‌defendants, whose ‌full names they did not state, were "fully ‌aware" that both Nvidia and ‌Super Micro have "rigorous internal control procedures" regarding exports.

However, the defendants "colluded with one another at various levels for enormous profit, ‌illegally exporting high-end servers, increasing corporate compliance costs, and severely damaging our ⁠nation's ⁠international image", they added.

Neither Nvidia nor Super Micro immediately responded to requests for comment.

Taiwan has tightened export controls in recent years to keep advanced technology and know-how from reaching China, which claims the democratically governed island as its own territory despite the strong objections of the island's government.


TikTok Reaches $400 Million Settlement with US Justice Department over Children's Privacy

FILED - 24 August 2022, North Rhine-Westphalia, Cologne: The logo of Tik Tok is seen at Gamescom. Photo: Rolf Vennenbernd/dpa
FILED - 24 August 2022, North Rhine-Westphalia, Cologne: The logo of Tik Tok is seen at Gamescom. Photo: Rolf Vennenbernd/dpa
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TikTok Reaches $400 Million Settlement with US Justice Department over Children's Privacy

FILED - 24 August 2022, North Rhine-Westphalia, Cologne: The logo of Tik Tok is seen at Gamescom. Photo: Rolf Vennenbernd/dpa
FILED - 24 August 2022, North Rhine-Westphalia, Cologne: The logo of Tik Tok is seen at Gamescom. Photo: Rolf Vennenbernd/dpa

TikTok has reached a $400 million settlement with the US Department of Justice, ending a 2024 lawsuit alleging the company violated federal children's privacy laws.

The DOJ said Friday that TikTok will pay $300 million immediately and another $100 million after an order vacates an earlier consent decree against its predecessor company, Musical.ly.

“This settlement is a major victory for American children and parents,” said US Associate Attorney General Stanley E. Woodward Jr. in a statement. “The Department’s priority is ensuring that children are protected online and that companies entrusted with their personal information meet their legal obligations. This resolution secures a substantial recovery while reinforcing the protections that families expect and deserve.”

Since the DOJ's lawsuit in 2024, TikTok has undergone major changes, most notably in the ownership structure of its US arm. In January, the social video platform company signed agreements with major investors including Oracle, Silver Lake and MGX to form the new TikTok US joint venture.

Representatives for TikTok did not immediately respond to a message for comment Friday.

The latest lawsuit focused on allegations that TikTok and its China-based parent company ByteDance violated a federal law that requires kid-oriented apps and websites to get parental consent before collecting personal information of children under 13. It also says the companies failed to honor requests from parents who wanted their children’s accounts deleted, and chose not to delete accounts even when the firms knew they belonged to kids under 13.

The settlement comes as social media companies face an avalanche of lawsuits over children's safety and privacy and a growing number of countries are banning young kids and teens from social media apps. Instagram's parent company, Meta Platforms, is currently on trial in federal court in Oakland, California, over allegations it violated the 1998 Children’s Online Privacy Protection Act, or COPPA, along with various state statutes.