Nvidia has announced that it is investing $5 billion USD (around $6.8 billion CAD) in Intel on a new joint venture. The two companies will be working together to build a generation of custom data center and PC products.
As announced by Nvidia, Intel is being tasked to develop custom x86 CPUs that the company is planning to integrate into its AI infrastructure platform and to the market. Additionally, Intel will build a market-ready x86 system-on-chip for Nvidia’s RTX GPU chiplets. It’s said that the chips will power a “wide range” of PCs. These will closely integrate Intel’s CPUs with Nvidia’s GPUs.
“AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. Nvidia’s CUDA architecture is at the heart of this reinvention,” Nvidia founder and CEO Jensen Huang said in a press release. “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.”
Nvidia is investing $5 billion in Intel’s common stock, which has a purchase price of $23.28 per share.
The established partnership between the two companies should give them an edge to better compete with AMD, which has market dominance over Intel. AMD has been developing a strong force within gaming desktop CPUs as well as laptop processors for many years.
Intel has taken a market loss in the past few years as it has struggled to keep up with competitors within the AI space. Even collaborator Nvidia has excelled in the space, becoming the most valuable company in the world.
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