Nvidia plans to invest $5 billion in Intel and collaborate with the US chipmaker to create custom PCs and data centers. Nvidia’s action comes after the US government said last month that it will invest $8.9 billion in Intel stock as part of an initiative to increase semiconductor production in the US.
Nvidia to invest $5 billion on Intel
NVIDIA will invest $5 billion in Intel common stock, paying $23.28 per share. The investment is subject to standard closing conditions, which include regulatory clearances. “AI is driving a new industrial revolution and transforming every tier of the computing stack, from silicon to systems to software. NVIDIA’s CUDA architecture lies at the center of this revolution,” said Jensen Huang, the company’s creator and CEO.
“This historic partnership seamlessly integrates NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the massive x86 ecosystem, resulting in a world-class platform. Together, we will broaden our ecosystems and create the groundwork for the next era of computing.
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In the same month, Japan’s SoftBank agreed to invest $2 billion in Intel common stock. Nvidia will buy Intel common stock for $23.28 per share. The transaction is subject to typical closing conditions, which include regulatory approvals.
According to Reuters, the holding will give Nvidia approximately 4% of Intel following the issuing of further shares. The cooperation aims to integrate their architectures via Nvidia NVLink, which combines Nvidia’s AI and accelerated computing with Intel’s central processing unit technologies (CPUs) and x86 ecosystems.
Nvidia and Intel to work together
In order to provide customers with state-of-the-art solutions, the companies will concentrate on seamlessly integrating NVIDIA and Intel architectures through NVIDIA NVLink. This will combine the advantages of NVIDIA’s AI and accelerated computing with Intel’s top CPU technologies and x86 ecosystem.
Intel will construct specialized x86 CPUs for data centers that NVIDIA will include into its AI infrastructure platforms and sell. Intel will develop and market x86 system-on-chips (SOCs) for personal computers that incorporate NVIDIA RTX GPU chiplets. Numerous PCs that require the integration of top-tier CPUs and GPUs will be powered by these new x86 RTX SOCs.
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