Nvidia Invests $5 Billion In Intel
Update: The companies also announced various product development efforts. The deal does not involve any foundry work for Intel.
By Mark LaPedus
Nvidia and Intel have announced a major alliance, under which Nvidia will invest and develop products with Intel.
As part of the plan, Nvidia will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share. This in turn will give Nvidia a 4% stake in Intel, according to reports. The investment is subject to customary closing conditions, including required regulatory approvals.
The deal does not involve any foundry work for Intel. Nvidia and Intel will jointly develop multiple generations of custom datacenter and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.
The companies will focus on connecting Nvidia and Intel architectures using Nvidia’s NVLink. For data centers, Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market.
For personal computing, Intel will build and offer to the market x86 system-on-chip (SOC) devices that integrate Nvidia’s RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.
Intel is taking several major steps to bolster its semiconductor business and strengthen its bottom line. In recent times, Intel also received separate investments from Japan’s Softbank and the U.S. government.
But loss-ridden Intel continues to face a multitude of challenges in the market.