NVIDIA Investments Prove Support for Intel, Announces Plans for AI Servers and RTX-Equipped PCs via $5 Billion Stake
In a groundbreaking move, NVIDIA and Intel have formed a partnership to jointly develop future data center and PC chips, marking a significant step forward in the AI computing market.
This collaboration plays to both companies' strengths. Intel, with its x86 architecture and process technology, will team up with NVIDIA, the undisputed leader in AI and accelerated computing, thanks to its CUDA architecture.
NVIDIA will invest $5 billion in Intel, becoming one of its largest shareholders. This investment not only injects capital into Intel but also adds credibility to the tech giant in the rapidly growing AI computing market. Analysts have hailed NVIDIA's involvement as a turning point for Intel.
For personal computing, Intel will manufacture x86 system-on-chips with NVIDIA RTX GPU chiplets, aiming to power high-performance PCs. On the other hand, for data centers, Intel will build custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms.
The companies have also agreed to design processors that communicate faster with NVIDIA GPUs using proprietary NVLink technology. This partnership aims to design multiple generations of products for data centers and personal computing.
Intel's CEO, Lip-Bu Tan, spoke about the NVIDIA partner association, expressing optimism about the collaboration's potential. Earlier this year, Intel also secured a $2 billion investment from SoftBank.
The exact launch dates for their first joint products have not been disclosed, but the companies have confirmed that their previously announced product plans remain on track.
This strategic partnership is timely, as AI is powering a new industrial revolution and reinventing every layer of the computing stack. The collaboration raises questions for rivals, including Taiwan's TSMC and AMD.
However, Intel's Tan aims to streamline operations and build new factory capacity only when demand supports it. The NVIDIA's $23.28 per share investment in Intel values Intel below its Wednesday closing price but above the price the U.S. government recently paid for its 10% stake.
The partnership between NVIDIA and Intel is set to extend across "multiple generations" of new platforms, promising exciting developments in the world of AI computing.
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