With the investment of $5 billion (roughly Rs. 44,100 crore), Nvidia has become one of Intel’s biggest backers.
Nvidia said this partnership will enable it to accelerate applications across its different verticals
Photo Credit: Nvidia
Nvidia announced a major investment in Intel on Thursday, which will make it one of the biggest investors in the chipmaker. The financial investment is part of a larger deal between the two companies. It will also witness the two collaborating to develop artificial intelligence (AI) infrastructure and chipsets for personal computers. Nvidia's partnership with Intel comes at a time when the chipmaker has been struggling to keep up with the AI race and has lost significant valuation in the market.
In a newsroom post, Nvidia announced the new deal it signed alongside Intel. The financial part of the deal includes the GPU maker investing $5 billion (roughly Rs. 44,100 crore) in Intel's common stock. These stocks were purchased at the price of $23.28 (roughly Rs. 2,054) per share. Notably, Nvidia highlighted that the investment has not closed, is subject to regulatory approvals and customary closing conditions of the market.
“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,” said Nvidia Founder and CEO, Jensen Huang.
As part of the deal, Nvidia and Intel will integrate their chipset architectures using NVLink. This will enable the integration of Intel's x86 ecosystem and Nvidia's RTX ecosystem, allowing for the development of more powerful platforms.
On the AI infrastructure side, the chipmaker will develop custom x86 CPUs for Nvidia's AI platforms and customers. The two companies will also jointly build x86 system-on-chips (SoCs) that integrate RTX GPUs. These will then be taken to the market to power a wide range of consumer PCs.
According to a Reuters report, the deal does not involve Intel's foundry, the contract manufacturing business via which it develops chips for other companies. The foundry is reportedly one of the biggest sources of Intel's financial struggles. Analysts have told the publication that Intel's survival could depend on whether it can find a large customer for its foundry.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.