Nvidia invests $5 billion in Intel to jointly develop AI and PC products

As early as 2022, Intel's revenue was twice that of NVIDIA. However, in the wave of artificial intelligence (AI), NVIDIA has taken the lead with its pre positioned acceleration chip and software ecosystem. This year, its revenue is expected to reach $200 billion, and its data center business alone has surpassed the total sales of any other chip company. In contrast, Intel lags behind in AI computing and advanced processes, and is forced to rely on TSMC to produce high-end products.

On September 18th, Nvidia and Intel, two industry giants, announced a strategic partnership. Nvidia will invest $5 billion in Intel to jointly develop customized data centers and personal computer (PC) products. This rare 'giant collaboration' move has shaken the industry and is seen as a crucial step for the United States to reshape its domestic semiconductor manufacturing capabilities. It has not only shaken the technology industry, but also triggered strong reactions in the capital market. Intel's (INTC) stock price surged by 30% before the US stock market opened, demonstrating the high expectations of the market for this cooperation.

Overview of Cooperation

According to the announcement released by both parties, Nvidia will invest a total of $5 billion to purchase Intel common stock at a price of $23.28 per share, becoming one of Intel's

important shareholders. This investment not only brings much-needed financial support to Intel, but also marks the official start of deep technological cooperation between the two

companies.

According to a press release released on Nvidia's official website, the two parties will engage in in-depth cooperation based on this investment, with a focus on the joint development of

customized AI infrastructure and personal computing platforms.

Data center field：Intel will customize x86 architecture central processing units (CPUs) for Nvidia based on Nvidia's NVLink technology. These customized CPUs will be integrated into NVIDIA's AI infrastructure platform to further enhance data processing capabilities and efficiency, meeting the demand for high-performance computing in the ultra large scale computing, enterprise, and consumer markets.

Personal computing field：Intel plans to launch an x86 system on chip (SoC) integrated with Nvidia RTX GPU chipset, bringing unprecedented graphics processing performance to the PC market. This innovative product will meet the dual needs of gamers, content creators, and professional users for high-performance computing and graphics processing, redefining the PC experience.