NVIDIA’s $5 Billion Investment in Intel: New x86 SoCs with RTX GPUs in Major Collaboration

NVIDIA has unveiled a significant partnership with Intel, involving a substantial investment of $5 billion aimed at collaborative chip development tailored for consumer and AI computing markets.

NVIDIA and Intel’s Collaboration on x86 Chips with Integrated RTX Graphics

This strategic alliance marks a pivotal moment for Intel, enhancing its market confidence, particularly regarding its x86 architecture offerings. As detailed in a recent blog post by NVIDIA, Intel will design specialized x86 chips that incorporate NVIDIA’s RTX GPUs. This development suggests a push toward customized CPU solutions from NVIDIA through its collaboration with Intel, particularly geared towards optimizing AI cluster integration.

Following the acquisition of the necessary regulatory approvals, NVIDIA’s investment of $5 billion will be allocated to Intel’s common stock at a valuation of $23.28 per share. This partnership surfaces amid increasing scrutiny and interest from entities like SoftBank and the former Trump administration, indicating a favorable shift toward the American chip firm.

In the scope of data centers, Intel will engineer NVIDIA-custom x86 CPUs, which NVIDIA will incorporate into its AI infrastructure platforms for market distribution. For personal computing, Intel is set to develop x86 system-on-chips (SoCs) that seamlessly integrate NVIDIA RTX GPU chiplets. These innovative x86 RTX SoCs will empower a diverse array of PCs that demand high-performance CPU and GPU integration.

NVIDIA Keynote at Computex — Image Credits: NVIDIA

While the specific details regarding these upcoming products remain undisclosed, it’s evident that this partnership emphasizes a joint approach in the computing sector. Despite recent challenges faced by Intel concerning its x86 offerings, the company continues to lead in this architectural space. With NVIDIA’s prominence in the graphics domain, the integration of these technologies could lead to groundbreaking products. We will continue monitoring developments as new information becomes available.

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