Why is Intel's GPU Program Having Problems?

An anonymous reader shares a report: If you recall, DG2/Arc Alchemist, was supposed to debut late last year as a holiday sales item. This would have been roughly 18 months late, something we won't defend. What was meant to be a device that nipped at the heels of the high end market was now a solid mid-range device. Silicon ages far worse than fish but it was finally coming out. That holiday release was delayed 4-6 weeks because the factory making the boards was hit by Covid and things obviously slowed down or stopped. SemiAccurate has confirmed this issue. If you are going to launch for holiday sales and you get delayed, it is probably a better idea to time it with the next obvious sales uplift than launch it between, oh say Christmas and New Years Day. So that pushed DG2/AA into mid/late Q1. Fair enough. During the Q2/22 analyst call, Intel pointed out that the standalone cards were delayed again and the program wasn't exactly doing well. While the card is out now, the reports of drivers being, lets be kind and say sub-optimal, abounded. The power/performance ratio was way off too, but there aren't many saying the price is way off unless you are looking at Intel's margins to determine what to buy the kiddies.

[...] Intel is usually pretty good at drivers but this time around things are quite uncharacteristic. Intel offered a few reasons for this on their Q2/22 analyst call which boiled down to, 'this is harder than we thought' but that isn't actually the reason. If that was it, the SemiAccurate blamethrower would have been used and refueled several times already so what really caused this mess? The short version is to look where the drivers are being developed. In this case Intel is literally developing the DG2 drivers all over the world as they do for many things, hardware and software. The problem this time is that key parts of the drivers for this GPU, specifically the shader compiler and related key performance pieces, were being done by the team in Russia. On February 24, Russia invaded Ukraine and the west put some rather stiff sanctions on the aggressor and essentially cut off the ability to do business in the country. Even if businesses decided to stick with Russia, it would have been nearly impossible to pay the wages of their workers due to sanctions on financial institutions and related uses of foreign currencies. In short Intel had a key development team cut off almost overnight with no warning. This is why SemiAccurate say it isn't their fault, even if they saw the war coming, they probably didn't see the sanctions coming.

Read more of this story at Slashdot.