Nvidia Invests $5 Billion in Intel Amidst Recent Stake Injections
Nvidia has announced a significant $5 billion investment in Intel, aimed at enhancing computational capabilities, with Intel set to assist in the creation of x86 chips that integrate RTX GPU chiplets, reports 24brussels.
This collaboration will enable both companies to develop multiple generations of custom data center and PC products, setting the stage for competitive advancements in technology. Nvidia plans to work closely with Intel to develop “x86 system-on-chips (SoCs) that integrate Nvidia RTX GPU chiplets,” which will support a wide range of PCs by effectively merging Intel’s CPUs with Nvidia’s GPUs.
The partnership builds upon their existing collaboration focused on gaming laptops, representing a crucial step in integrating both companies’ technologies onto a single chip platform. This move is particularly strategic as AMD continues to increase its market share with its impressive gaming CPUs and cutting-edge AI processors.
Furthermore, Nvidia and Intel will collaborate on connecting their architectures using Nvidia’s NVLink communication system, which facilitates connections between GPUs in data centers. “Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market,” Nvidia stated.
Nvidia CEO Jensen Huang described the partnership as a fusion of two leading technology platforms that “tightens the integration of Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the extensive x86 ecosystem.” He added, “Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Recently, the US government acquired a nearly 10 percent stake in Intel, valued at approximately $8.9 billion, while SoftBank has also pledged a $2 billion investment in the chipmaker. This comes at a time when Intel faces challenges, including workforce reductions as it pulls back on spending.
Following the announcement of Nvidia’s investment, Intel’s stock surged by 28 percent in pre-market trading, reflecting a rejuvenated optimism in the company’s prospects following significant financial support from strategic partners.
