Larabee was a mess....anybody who as actually been involved with designing a chip which breaks new ground (and is not just repackaging of somebody else's IP) knows that designing and taping out ANY AND EVERY chip is a big mess. It is not easy to tell heaven from hell on this one--and arguably, Intel's management at the time made the wrong call. Pretty much every decision they were making at the time was the wrong decision, which is why Intel is in the state it is in.
When I worked at Intel, Robert Noyce had unfortunately died, but we still had Andy Grove on the business end and Gordon Moore on the technical end. All three of those people are not just good, not even merely great. They were the kind of transcendent geniuses who rewrite the world, and which come along once every 2 or 3 hundred years. Impossible to replace.
AFAIAK, If Gelsinger couldn't fix Intel, it was irreparably broken by the time he got there. We should celebrate him for having the courage to try to fix what 4 previous CEOs couldn't fix.
I understand that it's painful when one of your suppliers has financial difficulty and has to exit a business you depend on. I feel ya. I hope that nobody will be writing blog posts about the OP's decision to partner with Intel in the first place, pointing to it as one of the fatal mistakes made by the company and their leaders.