Intel has quashed rumors of abandoning its discrete graphics business, with new co-CEO Michelle Johnston Holthaus reaffirming the company's commitment to the market. This comes as a surprise, given former CEO Pat Gelsinger's comments on the matter just weeks prior. During a recent earnings call, Gelsinger suggested that Intel's investments in discrete graphics would be reduced, citing the growing capabilities of integrated graphics.

However, Holthaus has now pledged to make "strategic investments" in the discrete graphics space, contradicting Gelsinger's stance. This announcement was made during Intel's CES 2025 keynote, where Holthaus addressed the audience and expressed the company's dedication to the market. The move is seen as a significant shift in direction, especially considering Intel's recent struggles in the discrete GPU space.

It's worth noting that Intel has only just achieved its first major success in the discrete GPU market with the Intel Arc B580 graphics card, which sold out quickly. This victory may have contributed to Holthaus' decision to reaffirm the company's commitment to the market. Additionally, the upcoming launch of the Intel Arc B570 GPU, a more budget-friendly option, suggests that Intel is serious about expanding its presence in the discrete graphics space.

Some analysts have speculated that Intel's "strategic investments" may actually be focused on the AI space, rather than gaming. This would align with the company's recent efforts to reposition itself as a leader in the AI PC market. Given the huge opportunity presented by AI, it's possible that Intel is shifting its focus towards this area, rather than traditional gaming applications.

Despite this, Holthaus' tone during the keynote was overwhelmingly positive, celebrating Intel's performance and battery life strengths in the Lunar Lake chip. The company's recent troubles, including the departure of former CEO Gelsinger, seem to have had little impact on its overall outlook. With the launch of the B570 GPU on the horizon, it will be interesting to see how Intel's renewed commitment to discrete graphics plays out in the coming months.

The implications of Intel's decision are significant, particularly in the context of the broader tech industry. As AMD and Nvidia continue to refocus their efforts on AI, Intel's commitment to discrete graphics may provide a much-needed alternative for gamers and consumers. Only time will tell if Intel can capitalize on this opportunity and establish itself as a major player in the discrete GPU market.