NVIDIA and Intel have announced a significant collaboration, combining their technology and resources in several joint efforts over the next few years. This partnership aims to develop new and improved AI datacenters, as well as a range of consumer PC products.
As part of the deal, NVIDIA will invest heavily in Intel by purchasing approximately $5 billion worth of Intel stock. Details of this investment reveal that NVIDIA will acquire Intel common shares at a price of $23.28 per share. However, this investment is still subject to closing conditions and approval from regulatory authorities.
According to a press release on Intel’s newsroom webpage, the full collaboration will involve NVIDIA providing Intel with advanced technology to build AI servers and datacenters. Additionally, NVIDIA will supply system-on-a-chip (SoC) components for new consumer PCs, strengthening Intel’s product offerings in the AI and consumer markets.
While NVIDIA has been a leader in the tech industry, capitalizing on its investments in AI hardware manufacturing alongside its popular consumer PC GPUs and CPUs, Intel has faced challenges. The company has struggled to keep up as competitors advanced in both the consumer space and AI datacenter technology.
The situation shifted somewhat when the US government acquired a 10 percent stake in Intel. However, Intel warned that this government investment could potentially impact its international sales and dilute existing shareholders’ value.
It’s worth noting that NVIDIA has not been without its difficulties. The company is currently facing strict regulations and restricted business operations in China, despite its global market success.
This new partnership between NVIDIA and Intel marks a noteworthy development in the technology sector, with both companies aiming to leverage their strengths and address their challenges through collaboration.
https://www.shacknews.com/article/146004/nvidia-nvda-intel-intc-collaboration
