Nvidia is offering Intel a $5 billion lifeline, only weeks after SoftBank and the US government made comparable investments. It had on Thursday, revealed a significant investment in Intel, making it one of the company’s largest sponsors. Its an agreement to “jointly develop multiple generations of custom data centre and PC products,” Nvidia is investing $5 billion in Intel common stock.
The monetary contribution is a component of a bigger agreement between the two businesses. Additionally, it will see the two working together to create chipsets and artificial intelligence (AI) infrastructure for personal computers. Nvidia and Intel have partnered at a time when the chipmaker has been losing market value due to its inability to stay up with the AI race.
Nvidia revealed the new agreement it signed with Intel in a press article. The GPU manufacturer would invest $5 billion, or around Rs. 44,100 crore, in Intel’s common stock as part of the deal’s financial component. The buying price of these equities was $23.28 (about Rs. 2,054) per share. Notably, Nvidia emphasised that the investment has not yet closed and is pending regulatory clearances as well as market-standard closing requirements.
The CEO of Nvidia, Jensen Huang stated that this ground-breaking partnership combines two top-tier platforms: NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and extensive x86 ecosystem. “Together, we will broaden our ecosystems and establish the groundwork for the upcoming computing era.”
Nvidia and Intel will use NVLink to integrate their chipset architectures as part of the agreement. This will make it possible to integrate the RTX ecosystem from Nvidia and the x86 environment from Intel, enabling the creation of more potent platforms.
For Nvidia’s AI platforms and clients, the chipmaker will create customised x86 CPUs as part of its AI infrastructure. Additionally, the two businesses will work together to develop x86 system-on-chips (SoCs) that incorporate RTX GPUs. After that, these will be introduced to the market to power a variety of personal computers.
According to Nvidia, Intel will contribute to the development of “x86 system-on-chips (SoCs) that integrate Nvidia RTX GPU chiplets.” These processors, which tightly integrate Nvidia’s GPUs and Intel’s CPUs, will power a “wide range” of PCs. On many gaming laptops, Intel and Nvidia already work closely together, but integrating both on a single SoC is a significant step forward.
A Reuters story claims that the agreement does not include Intel’s foundry, which is a contract manufacturing company that creates chips for other businesses. According to reports, one of the main causes of Intel’s financial difficulties is the foundry. The magazine has been informed by analysts that Intel’s ability to get a significant client for its foundry may determine its continued existence.
AMD, which has been overtaking Intel with its great gaming desktop CPUs, APUs, and a wide range of AI laptop processors, will be easier for Intel and Nvidia to compete with thanks to this. Additionally, if the corporation is now depending on Nvidia’s GPU expertise, it calls into doubt the viability of Intel’s Arc graphics card business.
Also following anther reports that the chipmaker has been collaborating with MediaTek to create an accelerated processing unit (APU) that combines an Arm-powered CPU with Nvidia’s Blackwell GPU architecture, Nvidia has now invested in Intel. For years, there have been rumours that Nvidia is developing laptop chips based on the Arm architecture. According to a new source, Alienware may release an Arm-powered gaming laptop later this year.
Additionally, Nvidia and Intel will collaborate to connect both of their architectures using Nvidia’s NVLink communications connection solution, which connects GPUs in data centres. According to Nvidia, “Intel will construct custom x86 CPUs for Nvidia, which Nvidia will incorporate into its AI infrastructure platforms and make available to the market.”
According to Nvidia CEO Jensen Huang, “this partnership tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem a fusion of two world-class platforms.” “By working together, we will develop our ecosystems and create the groundwork for the next computing era.”
Last month, In a deal for $8.9 billion, the US government agreed to acquire almost 10% of Intel. As the faltering chipmaker has been cutting back on spending and laying off thousands of employees, SoftBank is also investing $2 billion in Intel.
“Intel’s industry-leading data centre and client computing platforms, along with our manufacturing, process technology, and advanced packaging capabilities, will complement NVIDIA’s leadership in AI and accelerated computing to enable new breakthroughs,” said Intel CEO Lip-Bu Tan in a statement.
Following Nvidia’s statement, pre-market trading saw a 28% increase in Intel’s stock price.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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