Nvidia Partners With Intel In $5 Billion Deal To Build Next-Gen Processors

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Intel's Stock Price Already Jumped By 28% In Pre-Market Trading!

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  • Nvidia has announced a new $5 billion partnership with Intel across PCs and data centers. 
  • Intel will help Nvidia build x86 CPUs that integrate Nvidia RTX GPU chiplets to power a wide range of PCs.
  • For data centers, Intel will help build Nvidia-custom x86 CPUs that Nvidia incorporates into its AI platforms.

Intel has been falling behind in the booming AI market and the desktop CPU sector, with AMD slowly but surely gaining more control over the CPU industry every quarter. This has resulted in catastrophic layoffs in the past, but things may finally be looking bright. 

Nvidia has just announced a new $5 billion partnership with Intel at $23.28 per share. The joint solution will see Intel helping Nvidia build x86 CPUs that integrate RTX GPU chiplets over NVLink for PCs and data-center platforms.

Why it matters: After a series of woes by Intel over the years, the new partnership with Nvidia could finally turn things around for the company. Intel’s pre-market stock prices have already jumped by over 25%.

Nvidia
Nvidia currently has a monopoly on the GPU market.

As per the report, the new x86 RTX SoCs will ‘power a wide range of PCs’ by bringing Intel’s CPUs with Nvidia’s GPUs closer.

Compared to discrete PCIe designs, the new partnership will allow for higher bandwidth and lower latency CPU-GPU coupling to boost gaming performance. We can also expect improvements in AI inference and pro-app performance.

This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem.

-Nvidia CEO, Jensen Huang.

Additionally, Intel will build Nvidia-custom x86 SoCs that Nvidia adds into its AI platforms to push its data center capabilities to new extremes. So, Nvidia gains a new option alongside ARM, and Intel gets to attach its CPUs to Nvidia’s fastest-growing AI initiatives.

Together, we will expand our ecosystems and lay the foundation for the next era of computing.

The deal will also help Intel better compete with AMD. However, the future of Intel’s Arc GPUs remains unclear, as it will likely rely more on Nvidia’s GPUs in the future. 

Intel
AMD has also been catching up to Intel’s desktop CPU market.

Many specifics about the deal are also unclear, such as the number of generations and ship timing. Nonetheless, the CEOs of Nvidia and Intel will hold a press conference later today to discuss the details.

Do you think the new collaboration between Nvidia and Intel will result in stronger gaming PCs for gamers? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.

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