Nvidia is investing $5 billion in Intel shares and launching a long-term collaboration with its former direct competitor to create a new generation of hybrid chips. The architectures of the two companies will be closely integrated into solutions for PCs and data centers.
The companies will jointly develop x86 SoCs (systems on a chip) in which Intel processors will be integrated with Nvidia RTX graphics chiplets. According to Nvidia, such solutions will find application in a "wide range of PCs" - however, it is not specified what exactly is meant by this wording and whether it includes gaming devices.
A separate area of cooperation is related to the unification of architectures through the Nvidia NVLink communication system, which is used in data processing centers to connect graphics processors. Intel will produce custom x86 CPUs for Nvidia, and they will become part of its AI platforms.
The new initiatives will not replace Nvidia's already announced ARM-based products, including Grace Blackwell, but will only complement them. However, the partnership with Intel could seriously change the balance of power in the market.
AMD, which has strengthened its position in the processor market amid Intel's decline, but controls less than 4% of the discrete graphics market against NVIDIA's 96% and lags behind in the field of AI computing, risks being caught between two fires. At the same time, the prospects for Intel's business in the video card segment, where its share does not exceed one percent, look increasingly uncertain.
"Artificial intelligence is the driving force behind the new industrial revolution and the rethinking of every level of the computing stack - from silicon to systems and software. [...] This historic collaboration connects NVIDIA's accelerated computing and stack with Intel processors and the x86 ecosystem. Together, we will lay the foundation for the next era of computing."
"The Intel x86 architecture has been the cornerstone of modern computing for decades. Our platforms for data centers and client solutions, combined with Intel's manufacturing capabilities, will complement NVIDIA's leadership in AI, driving new breakthroughs in the industry."