No, it would not need to write off the $17 billion, it would simply spin Altera back out again. It was a successful stand-alone company and FPGAs have plenty of applications that have nothing to do with machine learning to make it a viable segment of the market for a long long time to come.
McAfee is a different matter and the mobile market could have been won but not in the way that Intel hoped.
They could have won the mobile market, at the cost of severely hurting their desktop market. In a way, Intel was scared of their atom being "too good". They had to suck, because the major premium they earn is selling i3/i5/i7/xeon, a low end x86 chip that performs well would have earned them good parts of the mobile market at low margin, and lost sales in the desktop market at high margin.
Already the cheap end x86 notebooks were ditching i3 for atom, and being "good enough".
The instruction set is irrelevant. In modern CPU, decoding the X86_64 instruction set takes about 80K transistors. Compare this with 1,175 millions transistor packed into a Skylake - it does not even factor.
What is relevant is the ability to compute within a power envelope. Intel didn't try to scale down its new designs for mobile. It tried to scale up old cores with new technology - something that they got good at during the tick-tock development flow. And guess what, new core designs beat process improvement. Intel eventually reached same power envelopes as ARM with more computing power, and better overall performance due to better memory bus access. But it reaches them after 8-12 months after Qualcomm does, so it's a full generation behind in terms of mobile development.
Specific to this acquisition, Movidius packs 150 Gflops under 4W of power. Skylake packs 100Gflops under 120W of power. The difference here is more than 2 degrees of magnitude. Moving the designs to the new Intel processes should cover another significant improvement. So that's what's going on.
> Specific to this acquisition, Movidius packs 150 Gflops under 4W of power. Skylake packs 100Gflops under 120W of power. The difference here is more than 2 degrees of magnitude. Moving the designs to the new Intel processes should cover another significant improvement. So that's what's going on.
Where did you get the measurements? Link please.
M2 to Skylake is like apples to oranges. The RISC cores are based on Leon, and then you have 12 SHAVEs/VLIW cores, which are very good at number crunching and GPU/DSP-like tasks, but they are not really general purpose CPUs as such. I think you should exclude them from your comparison.
Anyway, good for Movidius, I wish 'em all the best.
Added: Intel created a huge moat and wall around their x86 architecture. It worked very well for them in keeping out the rest of the world. The problem is, they inadvertently bricked up their gate and burned their drawbridge and now they are imprisoned in their own castle.
McAfee is a different matter and the mobile market could have been won but not in the way that Intel hoped.