Revenue at the UK arm of technology giant Intel has been slashed by almost $1.5bn (£1.1bn) as its profit was cut significantly during its latest financial year.
The division of the US group has posted a revenue of $3.3bn for 2024, down from the $4.7bn it achieved in 2023.
New accounts filed with Companies House also show its pre-tax profit was cut from $190.4m to $91m over the same period.
Intel hit by rising competition
In a statement signed off by the board, Intel said: “The decrease in revenue was largely driven by a decline sales of data centre and AI, network and edge group, client computing group and Altera products.
“The decline was driven by a competitive environment, macroeconomic challenges, consumption weakness, demand softness and persistent inflation.
“The decrease in revenue led to a reduction in profit for the financial year 2024.
“During the year 2024, Intel Corporation announced the implementation of cost-cutting measures, including a slower pace of hiring and restructuring actions, designed to reduce operating expenditures and manage the business towards the long-term financial model.”
The results for the UK arm of Intel come after City AM reported that rival Nvidia was to pump up to £11bn into Britain’s AI ecosystem.
The move will see the UK host Europe’s largest GPU cluster by 2026, with 120,000 of its latest Blackwell Ultra chips deployed across new data centres.
The chip giant will work with partners including Microsoft, CoreWeave and UK-based Nscale to build out the country’s sovereign compute capacity, a resource increasingly viewed as critical to national competitiveness.
“This is the biggest single investment by a technology organisation in the UK”, David Hogan, Nvidia’s vice president for enterprise EMEA said.
“We’re enabling our partners to deploy 300,000 GPUs globally, and 60,000 of those will be in the UK. Together with CoreWeave, that totals 120,000 GPUs deployed here by the end of 2026.”