Nvidia and Intel announce a remarkable collaboration on AI infrastructure and PC chips. A $5 billion investment by Nvidia gives the friendship a boost.
Nvidia and Intel are normally competitors in the AI race, but enemies can sometimes become friends. Today, both companies announce a collaboration that will include the joint development of chips for data centers and computers. Nvidia is purchasing $5 billion worth of Intel shares to show its good intentions.
Integration of CPUs and GPUs
Intel excels at designing CPUs, Nvidia at graphics chips. The collaboration logically focuses on connecting the architectures. Intel will develop custom x86 chips for Nvidia, which in turn will incorporate these into its AI ecosystem. This infrastructure will then be made available to the market.
In the realm of personal computing, Intel will build x86-based SoCs that integrate Nvidia RTX GPU chiplets. These chips are intended for PCs that require close collaboration between CPU and GPU, for example, for AI applications or graphically intensive software.
The collaboration addresses the growing demand for powerful and integrated solutions for AI workloads. Nvidia and Intel aim to leverage each other’s strengths: Nvidia in GPUs and AI, and Intel with its CPU technology and manufacturing capacity. Following the motto “If you can’t beat them, join them”, Intel chooses to ride the wave of Nvidia’s success rather than opposing it.
$5 Billion
Nvidia’s willingness to open its wallet likely helped convince Intel. As part of the collaboration, Nvidia is investing $5 billion in Intel shares. The investment is still subject to the usual approvals, including those from regulatory authorities. Intel can certainly use the money and recently welcomed Softbank and the US government as shareholders.
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Both companies indicate that the collaboration should lay the foundation for future generations of computing infrastructure. They aim to jointly address the increasing role of AI in both data centers and end-user products. The first products from the collaboration are expected in the coming years.
Shared Enemy
With this agreement, two major chip manufacturers are joining forces in a rapidly evolving market. Nvidia dominates that market but feels the hot breath of AMD, just as Intel feels it in the PC and server market. Shared enemies can lead to remarkable friendships.