Nvidia buys $5 billion stake in Intel, planning AI chip collaboration | TechCrunch

NVIDIA has agreed to buy Intel’s $5 billion stake, part of a broader deal, co-developing stakes in “multi-generation” data center and PC products.

NVIDIA will acquire Intel shares at $23.28 per share, with a slight discount to the company’s previous transaction price. according to Reutersthe deal will make NVIDIA one of Intel’s largest shareholders, owning about 4% of the company. Intel shares rose 30% early Thursday morning.

The two companies will use NVIDIA’s NVLINK interface to integrate their two architectures, which allows data and control code transfer between the CPU and the GPU. nvlink enabled Faster transfer This is crucial for AI applications compared to other standards such as PCI Express, which requires many GPUs to run together and handle huge workloads.

For data centers, Intel will manufacture X86 CPUs customized specifically for NVIDIA’s AI infrastructure platform and will be available to enterprises and highly-scale customers.

For the consumer PC segment, Intel will build an X86 system chip that will combine NVIDIA’s RTX GPU chiplets, which will undoubtedly give Intel an advantage over its competitors’ AMD CPUs. Currently, the companies call these chips “X86 RTX Soc” and claim that these chips will power “a wide range of PCs.”

The deal comes after a few tough years for Intel, which struggles to take advantage of a different AI chip competition from its new partners. The company brought it New CEO,,,,, Thousands of employees lay off When it tries to increase profit margins, and spike manufacturing projects Priority is given to CAPEX discipline.

This deal follows Another record quarter for Nvidiait has grown into one of the world’s most profitable semiconductor companies, no matter the industry, one of the world’s largest companies. During the same period, Intel has been working hard to keep pace with the fluctuations in market demand, especially the strong semiconductor demand for AI. As a result, cooperation can enable them to gain market share from competitors such as AMD.

“Intel’s leading data center and customer computing platform, coupled with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computer leadership to achieve new breakthroughs in the industry,” Intel CEO Lip-Bu Tan said in a statement.