NVIDIA and Intel Join Forces in $50 Billion Deal to Revolutionize AI Computing with x86-RTX Fusion

In a landmark move on September 18, NVIDIA announced a strategic collaboration with Intel, investing $50 billion in the latter and causing a significant stir in the market. The heart of this collaboration lies in the joint development of customized data center and personal computing products. By integrating Intel's x86 CPU architecture with NVIDIA's NVLink ecosystem, both companies aim to create more powerful AI supercomputers and next-generation PC products.

NVIDIA's acquisition of Intel's ordinary shares at $23.28 per share signifies not only a strengthening of their partnership but also hints at new opportunities for x86 architecture in the era of AI. Intel will customize x86 processors for NVIDIA, which will integrate these into its AI infrastructure platform in data centers. In the realm of personal computing, Intel plans to introduce x86 system-on-a-chip (SoC) with integrated NVIDIA RTX GPU technology. This fusion of GPU and CPU operations holds the potential to unleash stronger computational powers and catalyze new market opportunities.

Jensen Huang, CEO of NVIDIA, highlighted that the collaboration could yield an annual market opportunity ranging from $25 to $50 billion for both firms. By integrating Intel's x86 CPUs into AI supercomputers via NVLink in data centers, they plan to expand system scales, tapping into a $30 billion market potential annually. Meanwhile, the fusion of processors into SoCs in the personal computing realm aims to spawn novel laptop varieties. Moreover, NVIDIA is set to become a major customer of Intel’s server CPUs, leading to mutual benefits from this synergy.

Amidst discussions on manufacturing questions, Huang emphasized that NVIDIA continually assesses Intel's foundry capabilities, although this partnership remains focused on custom CPU collaboration. He praised TSMC’s world-class foundry services as a sustained ally for both NVIDIA and Intel. Furthermore, NVIDIA reiterated its commitment to developing next-gen Arm-based Vera CPUs. Pat Gelsinger, Intel's CEO, reflected on optimizing their balance sheet and fostering a culture of mutual compatibility to drive market progress. This initiative is anticipated to reshape the AI chip market landscape significantly, merging x86 architecture into NVIDIA's ecosystem to bolster competitiveness in data center and personal computing sectors, while prospectively establishing CPU and GPU integration as a burgeoning industry trend.