Nvidia buys $5B in Intel (tomshardware.com)

Article summary

Nvidia and Intel have announced a partnership to develop new x86 products, including Intel x86 RTX SOCs for the consumer gaming PC market and custom x86 data center CPUs for Nvidia's AI products. As part of the deal, Nvidia will buy $5 billion in Intel common stock, representing a roughly 5% ownership stake in Intel. The partnership aims to bring tighter integration between Intel CPUs and Nvidia GPUs, using the NVLink interface for CPU-to-GPU communication. The products are expected to take at least a year to come to market.

Main themes

• Nvidia-Intel partnership
• x86 products
• AI computing
• GPU technology
• Semiconductor industry
• Corporate acquisitions

What commenters say

• The partnership between Nvidia and Intel may be a precursor to a full acquisition, potentially giving Nvidia control over Intel's advanced fab and CPU technology.
• The deal could be seen as a strategic move by Nvidia to hedge against potential problems with its critical strategic partner, TSMC.
• Some commentators believe that Intel's corporate culture and internal issues, such as 'corporate cancer', may pose a significant challenge to the success of the partnership.
• Others argue that the deal is a good investment opportunity for Nvidia, allowing them to optimize custom x86 server CPUs for AI computing clusters and fend off growing competition.
• There are concerns that the partnership may lead to antitrust issues, given Nvidia's existing presence in the CPU market and Intel's GPU offerings.
• The acquisition of Intel stock by Nvidia may give them significant influence over Intel's decision-making, potentially affecting the direction of the company.