When Intel Corp. (INTC) hired Lip-Bu Tan as CEO in March, the logic was straightforward: bring in someone with deep venture capital connections and industry relationships who could help the struggling chipmaker navigate the AI revolution. That strategy has delivered impressive results, including billions in new investments. But it's also creating some seriously uncomfortable questions about whose interests Tan is serving.

The Rivos Deal Gets Complicated

Here's where things get interesting. In summer 2025, Tan pitched Intel's board on acquiring Rivos, an AI chip startup developing cutting-edge technology. Nothing unusual about a CEO proposing an acquisition, except for one detail: Tan personally held a stake in the company through his investment activities.

According to Reuters, citing three people familiar with the situation, the board initially rejected the idea. The concerns were pretty straightforward: obvious conflicts of interest, and Intel didn't have a formal AI strategy in place yet.

But then Meta Platforms, Inc. (META) entered with a competing bid, and suddenly Intel was back in the game. The ensuing bidding war pushed Rivos's valuation from roughly $2 billion to about $4 billion. Intel ultimately won, and while we don't know exactly how much Tan personally gained, his venture firm Walden Catalyst celebrated a "successful outcome" for investors. Draw your own conclusions.

And Rivos wasn't the only pitch. Tan also reportedly approached Intel about acquiring SambaNova, an AI computing startup where he serves as executive chairman. That's not just an investment, that's an active leadership role.

How the Governance Works, In Theory

Since becoming CEO, Tan has taken direct control of Intel Capital, the company's venture arm, which now reports directly to him. This gives him considerable influence over where Intel's investment dollars flow.

Intel's policy requires Tan to recuse himself from decisions where he might personally benefit, with authority temporarily passing to CFO David Zinsner during those moments. That's the formal structure, anyway.

Corporate governance experts aren't impressed. Tan's overlapping roles across Intel and his own investment firms, including A&E Investment, Celesta Capital, and Walden International, create what experts are politely calling "red flags."

To be fair, there's another perspective here. Some experts note that Intel could genuinely benefit from Tan's extensive industry connections. And the results speak for themselves: since Tan took over, he's helped secure $5 billion from Nvidia Corp (NVDA) and $2 billion from SoftBank Group (SFTBF) (SFTBY). Those are real dollars from real companies betting on Intel's future.

Intel's Defense

An Intel spokesperson emphasized the company's commitment to "corporate governance, integrity and accountability," highlighting that Tan's industry connections are critical for capturing the next wave of innovation. Tan himself reportedly believes his dual roles allow him to negotiate deals that benefit all parties involved.

Intel did not immediately respond to MarketDash's request for additional comments.

This Isn't the First Time

Tan's investment portfolio has attracted scrutiny before. In April, reports surfaced that his venture firms held stakes in over 600 Chinese companies, including some with potential military connections.

President Donald Trump wasn't subtle about his concerns, calling for Tan's resignation and describing the Intel CEO as "highly conflicted." But after an Oval Office meeting where Tan addressed Trump's concerns, the White House signaled that issues around U.S. national and economic security had been resolved.

By September, Trump had changed his tune entirely, publicly praising Intel's rising stock price following Tan's deal with Nvidia. Nothing changes Washington's mind quite like a winning stock chart.

Speaking of which: Intel stock has surged 101.68% year-to-date, an impressive turnaround for a company that was seriously struggling before Tan arrived. Market data shows a strong outlook for Intel across short, medium, and long-term horizons.

So here's the question Intel shareholders are facing: Is the conflict-of-interest concern worth it if Tan's connections keep delivering results like this? The board clearly thinks so, at least for now. But as the deals get bigger and the overlaps become more obvious, that calculation could change.