NVIDIA and Intel have announced a significant partnership to combine their technology and resources in several collaborative efforts over the coming years. This deal will focus on jointly developing new and improved AI datacenters, as well as creating a range of consumer PC products.
As part of the agreement, NVIDIA will make a substantial investment in Intel by purchasing approximately $5 billion worth of Intel stock. This move underscores the deepening relationship between the two tech giants. Details of the collaboration were shared in a press release published on Intel’s newsroom webpage.
The full scope of the partnership includes NVIDIA providing Intel with cutting-edge technology for building AI servers and datacenters. Additionally, NVIDIA will supply system-on-a-chip (SoC) components for upcoming consumer PCs. The stock purchase involves NVIDIA acquiring Intel common shares at a price of $23.28 per share. However, this portion of the deal still awaits the fulfillment of closing conditions and approval from regulatory authorities.
While NVIDIA has been a leader in the tech market—capitalizing on its investments in AI hardware manufacturing alongside its strong consumer GPU and CPU products—Intel has faced challenges. The company has been struggling to keep pace as competitors advanced in both the consumer technology space and in datacenter and AI technologies.
Intel saw a slight turnaround when the U.S. government purchased a 10 percent stake in the company. However, Intel also cautioned that this government investment might negatively impact its international sales and could dilute existing shareholders.
Despite NVIDIA’s global success, the company is not without its challenges. It is currently navigating tough regulatory scrutiny and facing restrictions on its business operations in China.
This collaboration between NVIDIA and Intel marks an important strategic move for both companies as they aim to strengthen their positions in AI, datacenters, and the consumer PC market.
https://www.shacknews.com/article/146004/nvidia-nvda-intel-intc-collaboration
