NVIDIA has announced a $5 billion deal with Intel, and both firms will collaborate on joint chip development that will focus on consumer and AI computing segments.
NVIDIA's Deal With Intel Includes Development of x86 Chips That Will Feature RTX Graphics Onboard
This is a breakthrough for Intel, since a partnership with NVIDIA means that Team Blue will see confidence from the markets in its products, especially those that focus on the x86 architecture. According to a blog post shared by NVIDIA, it is revealed that Intel will build custom x86 chips for NVIDIA that feature RTX GPUs onboard, which means we are looking at custom CPU solutions coming from Team Green in collaborating with Intel. More importantly, the announcement also focuses on building NVIDIA's x86-CPUs for integration in AI clusters.
After getting the required regulatory approval, NVIDIA will invest $5 billion in Intel's common stock at $23.28 per share. The partnership comes after SoftBank and the Trump administration focused on Team Blue, and NVIDIA's attention means there is an inclination towards the American chipmaker.
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.
We are still unaware of the specifics of the above-mentioned products, but it seems like a joint venture in computing products is the focus here. Despite Intel's sluggish years with its x86 products, the firm is still the dominant adopter of the architecture, and since NVIDIA is one of the leaders in the graphics segment, a combined product could prove to be phenomenal. We will update the report once details emerge.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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