NVIDIA and Intel Corporation will jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets. The companies will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink, integrating the strengths of NVIDIA’s AI and accelerated computing with Intel’s leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers.
- 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-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.
NVIDIA will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals.
“AI is powering a new industrial revolution and reinventing every layer of the computing stack, from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture,” said NVIDIA founder and CEO Jensen Huang. “This historic collaboration 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. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
“Intel’s x86 architecture has been foundational to modern computing for decades — and we are innovating across our portfolio to enable the workloads of the future,” said Lip-Bu Tan, CEO of Intel. “Intel’s leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business.”
Industry analysts see this as more than a partnership; it’s a turning point.
About the collaboration, he says: “The partnership between Nvidia and Intel is seen as a positive move for both companies. They are leveraging each other’s strengths to deliver products to customers, particularly in the enterprise sector. This collaboration will help Nvidia expand into new markets beyond the data center, focusing on AI inferencing across various endpoints like PCs, smartphones, and autonomous systems that can leverage a collection of compute chiplets and dry the requirements of performance efficiency.”
For the impact on AI and data center markets, he opinionates: “Nvidia’s success has been primarily in the data center sector, which is the fastest-growing segment for semiconductors and system companies. However, the collaboration with Intel will allow Nvidia to develop system-on-chips (SoCs) that cater to a broader set of customers and markets across the edge where both companies today do not lead.”
On Intel’s stabilization, Morales stresses: “The partnership provides Intel with an infusion of capital and confidence, helping to stabilize the company during its transformation. Intel’s historical leadership in the computing space is being challenged by Nvidia, but this collaboration aims to reassure customers and the US government of Intel’s continued leadership in process and CPU IP and as a technology enabler for the IT ecosystem.”
Finally, on the geopolitical stakes (US vs. China in the AI Race), he observes: “The announcement today highlights the ongoing AI race between the US and China. While the US currently leads in technology, China is rapidly advancing with its own AI initiatives. The collaboration between Nvidia and Intel is seen as a strategic move to maintain US leadership in AI technology infrastructure and endpoints.”
