Nvidia and Intel Form Historic Collaboration to Revolutionize Computing

Strategic Insights -

As part of a significant deal, Nvidia has invested in Intel, becoming one of the company's largest shareholders, holding around 4% of Intel's shares. This move marks a new era in collaboration between the two tech giants, enabling them to jointly develop PC and data centre chips. The partnership involves Intel designing custom CPUs for Nvidia, which will package with GPUs connected by NVLink, and Nvidia providing Intel with custom GPUs for use in PCs and data centres. The companies aim to "multiple generations" of future products, with no licensing component, and will provide chips to each other to create products. This historic collaboration will fuse Nvidia's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem, expanding their ecosystems and laying the foundation for the next era of computing.

Key Takeaways:

  • Nvidia has invested in Intel, becoming one of the company's largest shareholders, holding around 4% of Intel's shares.
  • The collaboration will involve Intel designing custom CPUs for Nvidia, which will package with GPUs connected by NVLink, and Nvidia providing Intel with custom GPUs for use in PCs and data centres.
  • The companies aim to "multiple generations" of future products, with no licensing component, and will provide chips to each other to create products.
  • The partnership will include Intel designing a custom CPU for Nvidia, which will be packaged with GPUs connected by NVLink to challenge AMD's strong position in the server market.
  • Nvidia will provide Intel with a custom GPU that Intel will package with its PC CPUs connected by NVLink for the consumer market.
  • For data centres, Intel will build Nvidia-custom x86 CPUs that Nvidia will then integrate into its AI infrastructure platforms.
  • Intel will build and offer to market x86 SoCs that integrate Nvidia's RTX GPU chiplets, powering a wide range of PCs that demand integration of CPUs and GPUs.
  • Nvidia's architect, CUDA, is powering a new industrial revolution, and Nvidia's innovation is at the heart of this reinvention.
  • Lip-Bu Tan, CEO of Intel, comments that Intel's leading data centre and client computing platforms, combined with its process technology, manufacturing, and advanced packaging capabilities, will complement Nvidia's AI and accelerated computing leadership.

Statistics:

  • Nvidia will hold around 4% of Intel's shares after the new shares are issued to complete the deal.
  • Intel has received a $2 billion investment from Softbank and a $5.7 billion investment from the US government in the past.
  • The companies haven't disclosed the financial terms of their collaboration but confirmed that it will involve developing "multiple generations" of future products.
  • Nvidia and Intel will provide chips to each other to create products, with no licensing component.

Sources:

  • Nvidia and Intel Form Historic Collaboration to Revolutionize Computing (Global Data Point, 2022)
  • Intel and Nvidia Form Historic Collaboration to Revolutionize Computing (SyndiGate Media Inc., 2022)