Nvidia and Intel announced a far-reaching collaboration Thursday to co-develop multiple generations of custom central processors for data centers and new x86 system-on-chips for personal computers, while Nvidia will purchase \$5 billion of Intel common stock at $23.28 a share, the companies said.
The effort centers on tighter links between the companies’ architectures using Nvidia’s NVLink interconnect, with the goal of pairing Intel’s CPU platforms and x86 ecosystem with Nvidia’s accelerated computing stack.
On the server side, Intel will design and manufacture Nvidia-custom x86 CPUs that Nvidia plans to integrate into its infrastructure platforms and sell to customers. For PCs, Intel will build x86 SoCs that incorporate Nvidia RTX GPU chiplets, targeting systems that benefit from close CPU-GPU integration.
Nvidia’s planned \$5 billion equity purchase is subject to customary closing conditions, including required regulatory approvals, the companies said.
A joint webcast with both chief executives is scheduled for 10 a.m. Pacific (1 p.m. Eastern) today. Members of the public can listen via the event link provided by the companies.
Jensen Huang, the founder and CEO of Nvidia, said the deal “historic” since it intimately links Nvidia’s accelerated computing platform with Intel CPUs and the larger x86 ecosystem. Intel CEO Lip-Bu Tan said that the deal would let Intel combine its data center and client platforms with its manufacturing and innovative packaging to make new breakthroughs for customers.
Why it matters: At a time when there is a lot of demand for high-performance computing, better CPU-GPU connectivity, and faster time-to-market across cloud and consumer devices, the alliance brings together two long-time competitors around shared plans for servers and PCs. It also comes at a time when Tan, who became CEO in March, is overhauling Intel.
What’s next: Neither company disclosed product launch timing or platform names. Investors and partners will be listening for hardware road-map details and manufacturing specifics during today’s webcast.
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