Prime Highlights
- Nvidia will invest $5 billion in Intel and collaborate on developing AI systems for both data centers and personal computers.
- The partnership marks a major step in reshaping the AI-driven semiconductor market, combining Intel CPUs with Nvidia GPUs.
Key Facts
- Under the agreement, Nvidia will purchase Intel’s x86 CPUs for its AI supercomputers, while Intel will integrate Nvidia’s GPUs into its processors.
- The collaboration targets a $50 billion market, covering both data centers and PC segments.
Background
Nvidia will invest $5 billion in Intel and partner with the chipmaker to develop new AI systems for data centers and personal computers, the companies announced Thursday. The deal comes after nearly a year of discussions between Nvidia CEO Jensen Huang and Intel’s new CEO Lip-Bu Tan, who has known Huang for over 30 years.
Under the agreement, Nvidia will buy Intel’s x86-based CPUs for its AI supercomputers and contribute GPU technology for Intel’s future chips. Intel, in turn, will sell processors for PCs and notebooks that integrate Nvidia’s graphics units. Huang described the collaboration as “an incredible investment,” adding that Nvidia will become a major customer of Intel CPUs while also supplying GPU chiplets for Intel systems.
The move signals how the AI boom has changed fortunes in Silicon Valley. Nvidia’s market value has soared past $4.25 trillion, while Intel has dropped to $143 billion. Analysts say the partnership could reshape the data center market, where AI models typically require multiple Nvidia GPUs for each CPU.
The companies emphasized that the deal focuses on custom CPUs and GPUs, not Intel’s foundry business. Nvidia currently relies on Taiwan Semiconductor Manufacturing Company for chip production but will use Intel’s advanced packaging technology.
The $50 billion addressable market includes data centers and PC segments, with both firms seeking to strengthen their positions in the AI era.
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