Techmeme Ride Home Summary – Thu. 03/13 – Intel’s New Boss
Release Date: March 13, 2025
1. Intel’s New CEO and Renewed Foundry Strategy
Lip Wu Tan Appointed as Intel’s CEO
At [00:04], host Brian McCullough announced that Intel has appointed Lip Wu Tan, a former board member and seasoned chip industry veteran, as its new CEO effective March 18. Tan’s appointment has positively impacted Intel’s stock, which surged over 10% following the news, as reported by Reuters.
Industry Insight and Strategic Direction
Jackie Gold, an analyst and president of Jaygold Associates, praised Tan’s deep understanding of the semiconductor industry, highlighting his experience in both product design and chip manufacturing. Gold stated, “Tan has an intrinsic understanding of the semiconductor industry, both from a product design aspect as well as the needs of enabling chip manufacturing” ([00:30]).
Tan is recognized as a strategic dealmaker, having invested in Annapurna Labs and Nuvia, and successfully revitalized Cadence Design Systems as its CEO. His leadership signals a steadfast commitment to Intel’s ambitious foundry strategy, despite its high costs and the previous CEO Pat Gelsinger’s ouster.
In a letter to employees, published on Intel’s website at [05:45], Tan emphasized his dedication to making Intel a top-tier foundry and restoring its reputation as a world-class product company:
“We will work hard to restore Intel's position as a world class products company, establish ourselves as a world class foundry and delight our customers like never before.”
Market Competition and Future Prospects
Analysts like Srini Pajari from Raymond James speculate on whether Tan might eventually split the foundry and chip design divisions. However, without such a move, Intel must demonstrate superior product quality to compete with industry giants like Taiwan Semiconductor Manufacturing Company (TSMC), which dominates the foundry sector.
2. Meta Introduces Community Notes on Social Platforms
Transition to a Crowdsourced Fact-Checking System
Starting March 18, Meta is launching Community Notes on Facebook, Instagram, and Threads in the US. Joel Kaplan, Meta’s Global Affairs Officer, explained the shift from a third-party fact-checking program to a community-driven approach, addressing previous issues with partisan bias and trust erosion ([10:15]).
“We decided to replace that system starting in the United States with a crowdsourced community based approach.”
Implementation and User Engagement
Meta is rolling out the program gradually, admitting contributors from a waitlist of over 200,000 users. Contributors will write and rate notes on content they find misleading, excluding ads initially but including posts by politicians and public figures. Meta plans to refine the open-source algorithm from X’s Community Notes to better fit its platforms ([12:30]).
Future Developments
As the program evolves, Meta may explore different algorithms to enhance the ranking and rating of Community Notes, ensuring that the system remains effective and unbiased. The goal is to empower users to add context and improve the credibility of information shared across Meta’s social networks.
3. Sonos Abandons Major Streaming Video Hardware Project
Cancellation of Pinewood Project
Sources informed The Verge that Sonos has abruptly canceled its streaming video player project, codenamed Pinewood. This decision marks a significant shift for the company, which had planned Pinewood as a major hardware launch for 2025 ([15:50]).
Reasons Behind the Decision
Interim CEO Tom Conrad stated that the push into video is off the table as Sonos refocuses its roadmap to address software issues that plagued 2024. The Pinewood project, which had been in deep development and beta testing, is being scrapped to reallocate resources toward strengthening Sonos’s core offerings.
“A push into video from Sonos is off the table for now,” – Tom Conrad ([16:30])
Implications for Sonos
The cancellation leaves Sonos without a significant new product for the latter half of 2025, following the release of the Arc Ultra Soundbar and Sub four last year. Internally, there were concerns that Pinewood might replicate the unsuccessful Sonos Ace headphones by entering a saturated streaming hardware market dominated by Roku, Amazon, Apple, and Google.
Future Focus
Sonos will concentrate on enhancing its software and improving existing products rather than venturing into new hardware categories. This strategic pivot aims to stabilize the company and avoid the pitfalls of competing in areas where Sonos lacks established expertise.
4. Microsoft Unveils Copilot for Gaming
Introduction of an AI Gaming Companion
Microsoft has announced Copilot for Gaming, an AI-driven companion designed to assist gamers by offering tips, guides, and in-game information. Initially available through the Xbox mobile app for Xbox Insiders, Copilot aims to enhance the gaming experience by acting as a personal coach ([19:20]).
Demonstrated Features
During a press briefing, Sonali Yadav, Product Manager for Gaming AI, showcased various scenarios where Copilot could aid players:
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Overwatch 2 Assistance: Copilot helps players by analyzing mistakes and recommending hero picks to complement team dynamics.
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Minecraft Guidance: Players can ask Copilot questions about crafting items, and even enable cheats to locate specific resources within the game world.
“Copilot can see your screen so it can guide you and see exactly what you're doing in a game.” – Sonali Yadav ([20:05])
These demonstrations highlighted Copilot’s potential to provide real-time, actionable insights tailored to individual gameplay styles.
Future Availability
Currently in the conceptual phase, Copilot for Gaming will undergo testing with Xbox Insiders through the mobile app in April. Microsoft plans to expand its availability across multiple devices following the initial testing phase, aiming for a broader release next month.
5. Adobe Faces AI Challenges and Stock Decline
Stock Performance and Market Concerns
Adobe reported a disappointing Q2 outlook, leading to a more than 12% drop in its stock price despite better-than-expected earnings of $5.08 per share and $5.71 billion in revenue ([22:40]). Investor anxiety centers around Adobe’s perceived lag in the generative AI space compared to competitors.
AI Integration and Revenue Projections
Adobe revealed that its annualized recurring revenue (ARR) from AI contributions stood at $125 million for the quarter, with expectations to double this figure by the end of fiscal year 2025. However, concerns persist about the speed and effectiveness of AI monetization efforts.
“I think guidance is rough and I think people are questioning is the AI monetization quick enough,” – Parker Snook, Senior Research Analyst at MScience ([25:00])
Analyst Perspectives
Mark Mordler from Bernstein remains optimistic, suggesting that long-term trends could affirm Adobe’s position as an AI leader. Conversely, Keith Weiss of Morgan Stanley emphasizes the need for a clearer AI roadmap to reassure investors.
Strategic Moves
Adobe is aggressively infusing AI into its software suite, enhancing products like Photoshop with advanced AI editing tools. CFO Dan Dern stated in a Reuters interview that Adobe aims to continue differentiating its offerings through innovative AI integrations, positioning itself to capture a larger share of the growing generative AI market.
6. Oracle Eyes Role in TikTok US Deal
Potential Partnership with ByteDance
Oracle is emerging as a leading contender to manage TikTok US, aligning with Project Texas, a multi-billion-dollar initiative established between TikTok and Oracle. The deal involves storing US user data on Oracle servers and allowing Oracle to review TikTok's algorithm source codes ([28:15]).
Negotiation Dynamics and Government Involvement
ByteDance prefers Oracle's involvement but seeks to maintain operational control over TikTok. President Trump has expressed support for the platform’s continuation, enhancing ByteDance's negotiation leverage. Discussions remain unresolved on whether the US government will gain an economic stake in TikTok, with proposals including a 50% revenue share or a cut from future sales or IPOs.
Oracle’s Role and Challenges
As the potential cloud computing provider, Oracle would rent its servers to TikTok. However, Oracle’s limited experience with consumer-facing social or e-commerce applications presents a challenge. It is anticipated that another firm might collaborate with Oracle to manage the TikTok app effectively.
“Oracle is expected to be involved as the cloud computing provider for TikTok, renting its servers to the app,” – Source ([29:30])
The outcome of these negotiations will determine the structure and control mechanisms of TikTok US, balancing regulatory requirements with operational efficiency.
7. Jon Gruber Criticizes Apple’s AI Promises
Accusations of Vaporware and Broken Trust
In an essay, Jon Gruber voiced strong criticism towards Apple for promoting AI features that remain undeveloped or non-functional. Gruber accuses Apple of damaging its long-earned reputation by announcing features like “Smarter Siri” at WWDC and the iPhone 16 launch without delivering tangible results ([32:00]).
“The fiasco is that Apple pitched a story that wasn't true, one that some people within the company surely understood wasn't true.” – Jon Gruber ([33:45])
Impact on Apple’s Credibility
Gruber argues that while generative AI is a monumental advancement in the tech industry, Apple’s late entry and subsequent failures to deliver on AI promises undermine its credibility. He emphasizes the importance of honesty and accountability, suggesting that Apple’s approach could lead to a cultural decline if not addressed promptly.
Call for Leadership Accountability
Gruber calls on Apple’s leadership, presumably targeting CEO Tim Cook, to address the discrepancies between promises and actual product capabilities. He warns that without corrective action, Apple risks fostering a culture of mediocrity and losing its commitment to excellence and integrity.
“When mediocrity, excuses and bullshit take root, they take over. A culture of excellence, accountability and integrity cannot abide the acceptance of any of those things and will quickly collapse upon itself with the acceptance of all three.” – Jon Gruber ([35:10])
Conclusion
Today's Techmeme Ride Home covered significant developments in the tech industry, including leadership changes at Intel, Meta’s new community-driven fact-checking initiative, Sonos’s strategic pivot away from streaming hardware, Microsoft’s innovative gaming AI, Adobe’s challenges in the AI landscape, Oracle’s potential role in TikTok’s US operations, and critical commentary on Apple's AI strategy. These insights provide a comprehensive overview of the dynamic and rapidly evolving technology sector.
Stay tuned for more updates tomorrow!