Nvidia will invest $5 billion in Intel, co-develop new server and PC chips

In a significant move that redefines their competitive landscape, Nvidia has announced a strategic investment of $5 billion in Intel. This acquisition provides Nvidia with approximately 4 percent ownership of its rival, marking a remarkable shift in their relationship. Both companies revealed plans to collaborate on the development of multiple generations of custom data center and PC products. According to a statement from Nvidia, the focus will be on enhancing the synergy between Nvidia and Intel architectures through the use of NVIDIA NVLink. This integration aims to combine Nvidia's advanced AI capabilities and accelerated computing with Intel's renowned CPU technologies and x86 ecosystem, delivering innovative solutions to their customers. Instead of merging their technologies, the collaboration will see Intel produce custom x86 chips designed to Nvidia's specifications. Nvidia intends to integrate these CPUs into its AI infrastructure platforms, making them available in the marketplace. On the consumer front, Intel is set to create x86 System on Chips (SoCs) that will merge Intel CPUs with Nvidia's RTX GPU chiplets. This could lead to more compact gaming laptops and provide Nvidia with an opportunity to enter the handheld gaming PC market, akin to devices like the Steam Deck or ROG Ally. It's important to note that the design, testing, and mass production of new processor designs takes time, so it may be a couple of years before we see tangible results from this partnership. Nevertheless, this announcement underscores the evolving dynamics between the two companies, especially considering that back in 2005, Intel contemplated acquiring Nvidia for as much as $20 billion when Nvidia was primarily recognized for its GeForce graphics chips, and Intel was on the brink of launching its influential Core and Core 2 processors.