Nvidia is investing US$5 billion (about C$6.9 billion) in Intel stock as part of a wider collaboration between the companies that will see them jointly develop custom data centre and PC products.
According to an Intel release, the companies will work on connecting Nvidia and Intel architectures using Nvidia NVLink, a communications link developed by Nvidia for transferring data and control code between CPUs and GPUs. The companies will also integrate Nvidia’s AI and accelerated computing with Intel’s CPU technology and the x86 ecosystem.
Intel says it will build x86 system-on-chips (SoCs) that integrate Nvidia’s RTX GPU chiplets to power personal computers. Intel will also build custom x86 CPUs for Nvidia to integrate into its AI infrastructure platforms.
Nvidia’s investment comes amid a tough time for Intel. The company has been losing ground to competitors like AMD and Qualcomm, which have offered chips with better efficiency and/or performance. And while Nvidia has maintained a lead in the GPU market, AMD has closed the gap with impressive price-to-performance on its GPUs. The future of Intel’s own GPUs seems questionable now that the company will include Nvidia’s GPU tech in its chips.
It also seems like an odd shift for Nvidia, which has reportedly been working on ARM-based laptop chips for years, and possibly could launch an ARM-powered gaming laptop with Alienware later this year, according to The Verge. Apple and Qualcomm use ARM for their chips, which are notable for beating x86 on efficiency, drawing less power to complete the same tasks.
The investment also comes after multiple Intel layoffs and follows on the heels of the U.S. government agreeing to take a 10 per cent stake in Intel (US$8.9 billion / C$12.3 billion). Softbank also invested US$2 billion (about C$2.8 billion) in Intel.
MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.
