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(Bloomberg) — Sam Bankman-Fried is on his way to an airport to be flown to the US to face a litany of criminal charges after a Bahamas judge approved his extradition. 

The FTX co-founder was whisked away from a Nassau court in a black SUV at approximately 4:30 p.m. on Wednesday under heavy guard. He’s expected to be taken into custody by US authorities and flown to New York.  

“I do wish to waive my rights to formal extradition proceedings,” Bankman-Fried told a judge earlier on Wednesday, dressed in a blue suit, white shirt and socks and brown leather shoes with laces removed. “I am doing well,” he said earlier when asked by the judge about his condition. 

On the stand, Bankman-Fried, 30, described himself as an entrepreneur and executive. 

The developments cap a tumultuous week of machinations over when Bankman-Fried would be sent to New York, where federal prosecutors have accused him of crimes including fraud related to the collapse of the FTX crypto exchange. If convicted of all counts, he could face dozens of years behind bars.

Since being denied bail at an initial court hearing last week, Bankman-Fried has been held in a correctional facility on the outskirts of Nassau known as Fox Hill. The notorious prison is a far cry from the luxury penthouse in the island nation that he’d lived at after setting up the Bahamas as FTX’s headquarters.

Although he initially said that he would fight extradition, Bankman-Fried has more recently indicated in private conversations that he was preparing to return to the US as soon as Monday, Bloomberg News has reported. The change in attitude was in part tied to the expectation that he’ll be able to get bail in the US.

A representative for Bankman-Fried declined to comment on conversations that his legal team is having with prosecutors. 

Once back in the US, he’s likely to be arraigned within hours and his lawyers may present a case for him being granted bail. It wasn’t immediately clear at which American airport Bankman-Fried would land. 

(Updates on court appearance starting in second paragraph.)

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(Bloomberg) — Elon Musk is “not suited” to run Twitter Inc. and should instead focus on repairing the damage his acquisition has done to Tesla Inc.’s brand, according to an investor in both companies.

To the extent that Musk remains involved with the social media platform, it should be with the underlying technology rather than as the “front-facing CEO,” Ross Gerber, head of Gerber Kawasaki Wealth Management, said in an interview with Bloomberg TV on Wednesday.

“Let somebody who’s a media-savvy person deal with advertisers and the media and the front face of the company,” Gerber said. “I think he just got himself maybe over his skis in an area that he’s just not suited to deal with the subtleties of.”

While Gerber’s firm owned just 390,100 Tesla shares as of Sept. 30 — a stake of about 0.01% — the longtime investor has become a public face for investors growing concerned over the electric-vehicle maker’s direction and of Musk’s ability to oversee it. Tesla’s value has tumbled more than 60% since the start of the year, and Musk has sold a substantial portion of his own shares to fund the Twitter acquisition.

Tesla’s shares rose less than 1% at 3:23 p.m. in New York.

Gerber has posted critical tweets recently, including one telling Tesla’s board it’s “time for a shakeup” after the stock slide. The comments drew the attention of Musk, who tweeted several rebuttals to Gerber, suggesting that he “go back and read your old Securities Analysis 101 textbook.”

See also: Musk Is Seeking New Twitter Investors at Same Price He Paid

Still, the billionaire, who also runs companies including launch provider SpaceX, has acknowledged having too much on his plate. He said Tuesday that he would resign as Twitter’s CEO once a replacement is named, a nod to a poll he posted over the weekend in which a majority of respondents said he should step down.

Despite his criticism, Gerber said Wednesday that he believes Tesla is still set up for “massive growth” and that he’s “perfectly happy” with a focused Musk at the helm. 

“Tesla is the most consequential company that’s ever existed,” Gerber said. “I think all this noise will be gone in six months.”

–With assistance from Sonali Basak and Kailey Leinz.

(Updates with size of investor’s Tesla stake in third paragraph)

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©2022 Bloomberg L.P.

(Bloomberg) — Cannabis ETFs endured steep losses this year alongside other risky bets, but the onslaught accelerated in December after a regulatory disappointment.

Both the $467 million AdvisorShares Pure US Cannabis ETF (ticker: MSOS) and $1.4 million Roundhill Cannabis ETF (WEED) are down nearly 50% from Dec. 5 highs after rallying on an end-of-year push by Senate lawmakers to attach a marijuana banking bill to a must-pass government funding package, which ultimately failed. MSOS, the largest pot exchange-traded fund, lost $7.4 million of assets in its latest session, the biggest outflow since April.

With the legislation – which would have prohibited federal regulators from penalizing banks for providing services to legal cannabis businesses — once again off the table, the setup for pot-themed funds next year is bleak. Marijuana-linked firms are facing the same tough market and interest rate uncertainties as other growth-oriented businesses.

“Pot stocks were part of the ‘speculative bubble’ that popped last year and that has continued throughout 2022,” said Todd Sohn, a technical analyst at Strategas Securities. “There’s no reprieve here yet, and the groups involved continue to suggest there’s no new liquidity cycle imminent – that is, the Fed isn’t coming to the rescue.”

Sohn likens cannabis firms to other investments including long-duration technology companies, SPACs and Bitcoin miners, all of which have gotten crushed this year as financial conditions tightened. And 2023 could be another bumpy ride. 

“The difficult part will be navigating the bear market bounces that come with a sector being cheaply valued – and the mental fortitude to stay involved,” Sohn said.

Also hitting pot stocks is the growing cheapness of marijuana. Low prices and the proliferation of sellers is putting the legal market for cannabis under pressure.

Still, the price slump for pot ETFs has been so severe that they may start looking attractive heading into 2023. Cannabis stocks could become “just too cheap to ignore, particularly as growth opportunities are less certain elsewhere in the economy,” wrote BTIG analysts led by Jonathan DeCourcey.

The analysts expect regulators may reconvene over the pot bill in the latter half of 2023. 

That could drive more price swings in MSOS and WEED, according to James Seyffart of Bloomberg Intelligence. He expects the two funds “will react most aggressively and have the highest beta to US regulatory and legal decisions because they are the most concentrated ETFs that hold multistate operators.”

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(Bloomberg) — Sam Bankman-Fried, shirtless in black sweatpants, lies in the fifth cot –- the one nearest the door, by the rasping fan, past the frail old man and the prisoner on suicide watch.

Keys jangle. The morning guards arrive. Downstairs, in squalid maximum-security cells, another hellish night is ending.

As the sun rose over the Bahamas on Wednesday –- capping Bankman-Fried’s eighth and planned final night at the island nation’s only prison –- a picture has emerged of the disgraced and indicted cryptocurrency mogul’s time as the most famous prisoner at Nassau’s notorious Fox Hill facility.

His life there has been about as good as it gets at Fox Hill -– not quite the “Club Fed” accommodations favored by white-collar offenders in the US, but nothing like the overcrowded cells many others must endure.

Unlike those prisoners, Bankman-Fried has been held in the sick bay. He’s had access to running water and even a toilet, among other perks. He’s spent his days watching TV news and reading articles about himself, according to prison officials, who spoke on the condition of anonymity.

Representatives for Bankman-Fried and Fox Hill declined to comment on the conditions of his lock-up.

Bankman-Fried’s life in the island nation has taken a dramatic turn since he was arrested this month. Before FTX collapsed, sending shock waves through the crypto world, the ex-billionaire lived a few miles away from the prison, which locals refer to as “Fox Hell,” in a $30 million penthouse with his close friends and colleagues.

At Fox Hill, which is more formally called the Bahamas Department of Correctional Services facility, Bankman-Fried shared the one-room sick bay with four other men. All of them have cots – a luxury in the complex, where prisoners have complained about being forced to sleep on the bare ground or on makeshift cardboard beds in rat-infested cells. The medical unit lies beyond the armory and is painted green and yellow. The window overlooks the prison chapel.

Shower and Toilet

Under lockdown, day after day, Bankman-Fried’s routine was the same. 

Inmates are roused when the morning guard shift arrives around 6 a.m. Individual guards have been assigned to watch over Bankman-Fried during the 2 p.m. to 10 p.m. and 10 p.m. to 6 a.m. shifts, in a nod to his notoriety. A prison doctor has examined Bankman-Fried twice a day. A barn-like door provides a modicum of privacy for the shared shower and toilet. 

Even the food is better. Prison officials have said that Bankman-Fried has been getting vegan food. More standard breakfast options in the sick bay include grits and steamed sausage, sardines and Cream of Wheat, along with Lipton tea. Lunch offerings include turkey curry, corned beef and fried chicken wings, all served over white rice.

Per standard procedure, those confined to the medical unit aren’t allowed out for exercise. Bankman-Fried has spent most of his time in his cot. Air conditioning from the nearby inspector’s office has made his nights more comfortable.

Crossword Puzzles

He’s been allowed to play crossword puzzles, watch cable TV and read local newspapers. He has taken numerous calls from his lawyer over a special line connected to the visitor center a floor below.

Bankman-Fried has spoken to some of the on-duty officers and said he regretted causing any problems for the Bahamian government.

Although he initially said that he would fight extradition, Bankman-Fried started to indicate late last week that he was preparing to return to the US. The change in attitude was in part tied to the expectation that he’ll be able to get bail in the US, according to a person with direct knowledge of the matter. 

SWAT Team

By late Tuesday, preparations for Bankman-Fried’s extradition were well underway at Fox Hill. Logistic plans were being drawn up, a SWAT team had been summoned.

Doan Cleare, the acting commissioner of corrections who runs Fox Hill, said Bankman-Fried seemed relieved and upbeat about the prospects of heading to the US. 

After not appearing to rest well for more than a week, Bankman-Fried got a full night sleep, Cleare said in a text message. 

He woke up Wednesday morning, readied himself and ate a peanut butter and jelly sandwich on wheat toast. Then before leaving Fox Hill for court to formally accept extradition, Bankman-Fried wished the prison’s staff a Merry Christmas.

–With assistance from Ava Benny-Morrison.

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(Bloomberg) — In the crypto world, lack of experience isn’t always a barrier to fortune or notoriety. Take the 2016 Bitfinex hack, which led to charges against a rapper named Razzlekhan and her startup-guy husband.

In this episode of Bloomberg Storylines, we meet Heather Morgan and Ilya “Dutch” Lichtenstein, who are accused of stealing billions of dollars worth of Bitcoin. Morgan, who bills herself as “The Crocodile of Wall Street” and “Razzlekhan,” has broadcast her life online with a flood of posts and music videos, sometimes with her husband playing the foil. Could this pair have really pulled off the biggest heist in history?

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(Bloomberg) — Mazars Group, the accounting firm used by crypto giant Binance Holdings Ltd. and other big players in the industry to vouch for their assets held in reserve, has halted all such work for crypto clients, dealing a blow to an industry seeking to shore up confidence in the wake of FTX’s collapse. 

In an email sent by the French firm, Mazars said it had suspended work for cryptocurrency firms because of indications that markets haven’t been reassured by the “proof-of-reserves” reports it had published so far. The firm was also concerned about intense media scrutiny, the email said. A Mazars spokesperson later said the suspension was limited to its provision of proof-of-reserves reports, citing “concerns regarding the way these reports are understood by the public.”

“Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally,” a spokesperson for Binance said in a statement to Bloomberg News on Friday. “Unfortunately, this means that we will not be able to work with Mazars for the moment.”

The decision is a setback for an industry that’s been trying to bolster its credibility with investors following the collapse of crypto exchange FTX, which has been accused of misusing customer funds. Auditors have faced similar backlash in recent weeks, given that FTX itself had engaged such services prior to its collapse that seemingly missed any warning signs. Cryptocurrencies fell after the report, with Bitcoin down as much as 2.8% in trading Friday. BNB, the native token of Binance Smart Chain, fell as much as 4.8%.

Paris-based Mazars has been at the forefront of the crypto industry’s rush to conduct proof-of-reserves reports for the likes of Binance and other large exchanges, including Crypto.com and Kucoin. Statements from spokespeople for Crypto.com and KuCoin said they would be open to engagement with other audit firms. A website hosting Mazars’s reports for crypto clients is currently inactive. 

Incomplete Picture

Proof-of-reserves reports have faced scrutiny as they are not comparable to a full audit, in that they only show a firm’s assets, not its liabilites, and instead serve as snapshots in time that say information provided by clients broadly checks out. 

These disclosures have failed to calm investors, with many opting to pull their tokens off exchanges in fear of further implosions. Over the past two weeks, a net $554 million in stablecoins and more than $2 billion in Bitcoin and Ether have been withdrawn from centralized exchanges, according to data from CryptoQuant — though this is largely stabilized compared to the mass withdrawals seen when FTX collapsed in early November.

“It is unclear how far the solvency contagion could run, and proof of reserves is not the same as proof of solvency,” said Simon Taylor, head of strategy and content at crypto startup Sardine. “The issue with FTX was that while it had reserves, those reserves were massively over valued relative to their risk in a bank run scenario.”

The Binance spokesperson said the exchange is exploring how it might provide additional transparency on its reserves in the coming months.

The cryptocurrency sector has long been plagued with a lack of established auditing standards, the consequences of which were laid bare in the recent unraveling of FTX. The exchange’s co-founder and former CEO Sam Bankman-Fried was arrested this week in the Bahamas, and faces civil and criminal charges in the US for wire fraud among other allegations.

John J. Ray, FTX’s new CEO, told US lawmakers on Tuesday that the defunct exchange had used accounting software QuickBooks to try and keep track of its finances, a system he said was wholly unsuitable for a company of its size. 

Read: FTX Collapse Puts Auditors in Crosshairs of Clients, Regulators

FTX had previously engaged auditing services by Armanino LLP and Prager Metis CPAs LLC. Ray said that FTX had yet to go through Armanino’s recent audit of the firm’s books, adding: “We do have to look through the books and records and look at the audits themselves and see how comprehensive they were to see if the audit would have picked up anything that we see. Certainly we’re going to look at the related party disclosures that are in those audits, whether there’s any footnotes or exceptions.”

Afraid of Crypto?

Many crypto companies have argued that they struggled to engage auditors at the top of the food chain for a deeper look at their books, due in part to the industry’s tarnished image as a vector for money laundering and other fraudulent behavior. Several companies have pledged to release full audits in due course, including Binance.

“Many audit firms are scared to work with crypto businesses,” said Binance CEO Changpeng “CZ” Zhao in a Thursday interview on CNBC. When asked why Binance hasn’t engaged a Big Four auditor — a moniker that refers to the largest accountancy companies PwC, Deloitte, EY and KPMG — Zhao added that such firms “don’t even know how to audit crypto exchanges.”

All four firms either declined or did not respond to requests by Bloomberg News to be interviewed.

Not Impossible

Critics have pointed out that, while it may be challenging, it is not impossible for cryptocurrency companies to secure full audits. Coinbase, the US-based publicly-listed exchange, works with Deloitte for its annual audited statements.

“Over the last several years, we’ve seen more auditors build out their practice to cater to the unique challenges crypto companies face,” said Maya Zehavi, a cryptocurrency angel investor. “It’s a shame that obfuscated business norms that have become the standard for offshore exchanges will ruin access for legit crypto companies to get professional auditing.”

Others have bemoaned an historic lack of expertise among top-tier auditors about how to analyze blockchain transactions and cryptoassets. Jean-Marie Mognetti, CEO of crypto asset management firm CoinShares, described several difficulties in getting a 2017 audit of its books by Deloitte over the line.

“It has always been difficult for them to play catch-up, because the people they have in-house don’t really have the skills,” Mognetti said in an interview. The process required a significant amount of training from CoinShares to teach Deloitte’s auditors how to properly vet a crypto firm’s books, he said, with the report then passed around to numerous partners overseas out of concern for the firm’s reputation.

The following year, the team at Deloitte in charge of CoinShares as a client was turned over with new staff, meaning that CoinShares would need to start the training all over again, Mognetti said. CoinShares now works with Baker Tilly for its annual audit. A spokesperson for Deloitte declined to comment on Mognetti’s statement.

‘Better Than Nothing’

Ultimately, a consensus remains that proof-of-reserves reports are insufficient, even as a stepping stone for crypto companies eager to show their financial health.

“If, for example, there are different parties that have claims on these assets, that might not necessarily come out through a proof-of-reserves report, and similarly that wouldn’t look at the internal control environment of these companies,” said Esther Mallowah, head of tech policy at the ICAEW, a global professional body for chartered accountants. “It’s a start, and it’s better than nothing, but I don’t think they provide the complete picture that investors need.”

A report published Thursday by industry group UK Finance included suggestions that as a first step, crypto firms should be required to meet local accounting and audit standards laid out under so-called client assets rules, which were strengthened after the 2008 financial crisis. “This would provide a framework for identification of client assets, segregation and safeguarding, reconciliation, and registration and legal title,” the group said.

–With assistance from Anna Irrera, Sidhartha Shukla and Philip Lagerkranser.

(The 20th paragraph of a story that originally ran on Dec. 16 was corrected to show that Baker Tilly, not Grant Thornton, is working with CoinShares.)

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(Bloomberg) — The US’s first national cyber director, Chris Inglis, is planning to step down in the coming months, according to a person familiar with the matter.

Inglis has worked as one of President Joe Biden’s top cybersecurity advisers at a time when the US was struggling to staunch a steady stream of ransomware attacks, on both businesses and government agencies, and persistent intrusions by hackers tied to foreign adversaries such as China and Russia.

Inglis’ intent to resign was first reported by CNN. He is expected to retire after he leaves the office, CNN reported. 

Inglis, a former deputy director at the National Security Agency, couldn’t be located for comment.

The role of national cyber director was created by Congress last year to coordinate policy across the government and private sector.

Inglis’ low-key, behind-the-scenes style contrasts with Biden’s two other top cyber officials: Anne Neuberger, the deputy national security advisor for cyber and emerging technology, and Jen Easterly, the director of the Cybersecurity and Infrastructure Security Agency.

Kemba Walden, a former Microsoft Corp. executive who joined the National Cyber Director’s office in May, will serve as acting director, according to CNN.

 

 

 

 

 

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(Bloomberg) — European natural gas fell to the lowest level since June 14 as near-record LNG imports and fuller-than-normal inventories further ease supply concerns. 

Benchmark futures settled 7.5% lower, falling below €100 for the first time in more than a month. Temperatures in much of the continent remain mild amid an influx of liquefied natural gas, which is helping to push prices lower. Increased wind generation is also keeping a lid on gas use. 

“With the cold snap over — and mild and windy weather forecast for the coming fortnight, as well as routine lower industrial demand over Christmas — there are a lot of bearish drivers in play,” said Tom Marzec-Manser, head of gas analytics at ICIS in London.

Temperatures in parts of Europe are expected to retreat closer to seasonal norms next week, but chances for a mild January seem to be increasing, analysts at trading firm Energi Danmark A/S said in a note.

Dutch front-month gas contract, Europe’s benchmark, settled at €97.75 per megawatt-hour. The UK equivalent fell 7.9%. Year-ahead German power prices fell 7%, also to the lowest level since June. 

European gas storage is about 83% full, above the five-year seasonal average, data from Gas Infrastructure Europe show. Supplies from Russia sent through Ukraine were stable on Wednesday, with Gazprom PJSC using alternative links to ship the fuel after one of its local pipelines was damaged this week by a fire.

EU Price Cap

There are concerns among some industry watchers that a price cap, planned by the European Union for next year, may discourage suppliers if gas gets more expensive elsewhere, especially in Asia. There’s no impact so far on LNG deliveries to Europe, but it will be “closely monitored if the downward trend in European gas prices continues,” according to EnergyScan, the analysis platform of Engie SA.

The EU’s executive arm has said the new price tool won’t be triggered if prices are similarly high in other markets. The “mechanism is flexible enough to ensure that the European market will remain attractive for traders,” Czech Industry Minister Jozef Sikela told Bloomberg TV on Wednesday. 

Given the caveats built in, the EU’s new policy to limit prices is unlikely to be activated next year at all, analysts at Capital Economics said in a note. “It seems the only thing countries agreed on was that a cap was indeed needed to show unity,” they wrote.

–With assistance from Anna Shiryaevskaya.

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(Bloomberg) — Bally’s Corp. Chairman Soo Kim says building and running a proposed $1.7 billion casino complex in Chicago is crucial to the successful relaunch of a storied name in the gambling industry.

The venue “will be our most important, period,” in terms of the company’s overall strategy, Kim said in an online video interview. “It’s really an opportunity to re-announce and reintroduce the Bally’s brand name nationally and what better place than Chicago.”

Kim’s hedge fund Standard General owns a 22% stake in the gaming concern, formerly known as Twin River Worldwide Holdings Inc. In 2020, the Providence, Rhode Island-based firm purchased the Bally’s name from Caesars Entertainment and plans to use the brand that dates back to 1947 to further its expansion from a single venue in its home state to more than a dozen properties in 10 states.

The plan is a bet by Kim that US casino gambling is poised to broaden from the Las Vegas strip, Atlantic City boardwalk, riverboats and tribal gaming houses. The project, subject to approval from state regulators, would be one of the biggest new gambling developments in the US and the first casino in Chicago.

“The next great frontier are large cities,” Kim said. 

Chicago Skeptics

Bally’s is facing skepticism in Chicago and elsewhere. While it’s grown dramatically through acquisitions recently, the company has never built a project of this scale — a one-million-square-foot casino to be flanked by a hotel, restaurants, entertainment center and exhibit space along the Chicago River.

Some aldermen in the third-largest US city have questioned the company’s financial resources and experience to manage such a development. Many of the biggest names in the casino business, including MGM Resorts International and Las Vegas Sands Corp., didn’t bid on the Chicago project out of concern about a high tax rate and market potential. 

Bally’s shares are down almost 47% this year, underperforming the roughly 20% decline in the S&P 500 Casinos & Gaming Index.

Even with a recent rise in gaming revenues in the Chicago area, which includes Illinois and Indiana, “oversaturation has to be a concern,” according to a September report by the Illinois Commission on Government Forecasting and Accountability, a bipartisan organization that provides research to state legislators. 

The city’s casino will compete with five Illinois sites as well as four in nearby Indiana, two new suburban casinos, two potential so-called racinos, or racetracks with slot machines, and more than 17,000 video gambling terminals in the region, the commission said. 

Illinois casino revenue totals remain below pre-pandemic levels and underscore an overall downward trend over the past decade, according to the commission. The growing popularity of online, sports and video gambling is keeping some bettors away.

Video gambling revenue has risen to 40.4% of the total the state gets from gambling taxes, while casinos have fallen to 7.4% in the year ended June 30, from over 50% a decade ago, according to the commission. The largest share of revenue comes from the Illinois lottery.

“Once more gambling opportunities arrive in the form of new casinos, the competition for the gaming dollar in this area will be larger than ever and ‘winners’ and ‘losers’ should be anticipated,” said the report from the commission. 

Bally’s ‘Confident’

Kim says the Chicago casino will require Bally’s to use the experience it’s gained from other properties.

“It would absolutely be our most complex challenge,” Kim said. “We feel more than confident.”

Chicago has largely been excluded from casino gambling and the surge in video betting machines in Illinois and the region, Kim said. And the city, home to 2.7 million residents, hosted more than 30 million tourists in 2021.

“It’s another excuse to go downtown,” he said. “It’s about keeping Illinois state revenues in the state. It’s about keeping city revenues in the city.” Chicago forecasts the casino eventually may provide $200 million in annual revenue for two of its underfunded pensions. 

While Kim wouldn’t comment on revenue and gross receipt expectations, he said he expects the casino complex will draw gamblers from other venues in the region, including those who have opted for video machines. 

Bally’s submitted two separate bids last year to develop a casino, and the city chose the plan for the site of the old Chicago Tribune Publishing Center. A temporary site may open in 2023 and the permanent one could start in 2026, contingent on approval from the Illinois Gaming Board.

The city’s efforts to attract bids were hobbled initially by an unappealing tax rate that topped 70%. The Illinois General Assembly later lowered that to around 40% at the request of Mayor Lori Lightfoot to boost the project’s appeal.

“A brand that works in Chicago, works in America,” Kim said. “It’s a good place to win.”

 

–With assistance from Christopher Palmeri.

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(Bloomberg) — Intel Corp., the biggest maker of processors that are the heart of computers, broke up its graphics-chip organization in a bid to accelerate efforts to take sales from Nvidia Corp. and Advanced Micro Devices Inc. 

Raja Koduri, who heads the Accelerated Computing Systems and Graphics unit, will move to back to his previous position as Intel Chief Architect, the Santa Clara, California-based company said in a statement early Wednesday. Those who reported to him will move to either Intel’s PC or server chip business units. 

Koduri, whose career includes spells at Apple Inc. and AMD, is being given oversight of Intel’s long-term technology programs such as developing advanced memory and integrating different types of chips to achieve higher performance computing. He will work in cooperation with Intel’s design teams.

“Discrete graphics and accelerated computing are critical growth engines for Intel,” the company said in the statement. “We are evolving our structure to accelerate and scale their impact and drive go-to-market strategies with a unified voice to customers.”

Chief Executive Officer Pat Gelsinger is implementing an ambitious and expensive plan to return the chipmaker to the forefront of the $580 billion industry. He’s trying to revive Intel’s leadership in manufacturing technology and elbow his way into new markets such as graphics and outsourced manufacturing. 

Koduri’s business unit had operated independently and struggled to get its first products to the market on schedule. It now has offerings for consumer PCs and for the kinds of accelerator chips used by data-center owners such as Amazon.com Inc.’s AWS to speed up their artificial intelligence software work. Nvidia, in particular, has built a multibillion-dollar business from scratch in the last few years serving that segment. 

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