Nvidia buys a $ 5 billion share in Intel, planning AI Chip Collaboration collaboration

Nvidia has agreed to buy a share of $ 5 billion in Intel as part of a wider agreement to develop “multiple generations” of data and PC products together.

Nvidia will get Intel’s stock for $ 23.28 per share, a small discount on the previous trading price of companies. According to ReutersThe deal would make NVIDIA one of Intel’s largest shareholders, holding about 4% of the company. Intel shares increased by 30% in the first transactions on Thursday morning.

Companies will incorporate their two architectures using NVIDIA’s NVLink interface, which allows the transfer and control code between CPU and GPU. Nvlink allows fastest transport Among the chips compared to other standards such as PCI Express, which is vital to AI applications, which require many GPUs to run together and process huge workloads.

For the data centers, Intel will build a new X86 CPU series specially tailored to Nvidia’s infrastructure platforms, which will be offered to business and overpass customers.

For the consumer PC section, Intel will build X86 System-On-Chips that will incorporate NVIDIA GPUS chiplets, which will undoubtedly give Intel an advantage over AMD CPUs. The companies are calling these “X86 RTX Socs” chips, at the moment and claim that these chips will supply a “wide range of computers”.

The deal comes after a few years a few years for Intel, who struggled to use the AI ​​Chip race as opposed to her new partner. The company brought a new CEO, was fired thousands of staff as it sought to promote margins and production projects to prioritize Capex’s discipline.

The deal comes in heels another three -month record for Nvidia, which has evolved both in the most lucrative semiconductor companies in the world and from the market ceiling one of the largest companies in the world, regardless of industry. At the same time, Intel struggled to keep up with the fluctuations in market demand, in particular AI semiconductor demands. As a result, cooperation could allow them to support market share from opponents such as AMD.

“Intel’s top computer platforms and customers, coupled with the capabilities of processes, manufacturing and advanced packaging, will complement NVIDIA AI and the accelerated computational leadership to allow new discoveries for industry,” said Intel Lip-Bu CEO.