A Bloomberg article on Tuesday featured word from a company employee in Taipei, who claimed Otellini told Taiwanese workers that Microsoft was pushing the software out before it was ready in order cash in on the Christmas rush.
Otellini is also said to have made clear his concerns about the need for improvement and also the amount of bugs that still exist within the operating system.
The comments were deemed explosive as they come just one month from the official launch date of October 26, with Microsoft having sent the final build to its manufacturing partners.
Intel has now issued a statement claiming that the reports are "unsubstantiated" and reiterated Otellini's earlier assurances that "Windows 8 is one of the best things that ever happened to Intel."
Any suggestion, from perhaps Microsoft's most important launch partner, that Windows 8 isn't quite up to scratch would surely cause a few red faces at both organisations, especially with AMD ready to step in.
Intel interestingly said that Otellini's alleged remarks were "unsubstantiated" rather than simply claiming the report was "untrue," so what did he really say?
Intel's full statement on the matter is as follows: "Intel has a long and successful heritage working with Microsoft on the release of Windows platforms, delivering devices that provide exciting experiences, stunning performance, and superior compatibility. Intel fully expects this to continue with Windows 8.
"Intel, Microsoft, and our partners have been working closely together on testing and validation to ensure delivery of a high-quality experience across the nearly 200 Intel-based designs that will start launching in October.
"Intel CEO Paul Otellini is on record as saying "Windows 8 is one of the best things that ever happened to Intel," citing the importance of the touch interface coming to mainstream computing and the huge wave of exciting new ultrabook, tablet, and convertible device innovations coming to the market."