Intel and NVIDIA Launch Major AI and GPU Partnership
NVIDIA and Intel have entered one of the largest industry collaborations in recent years. The partnership involves jointly developing multiple generations of consumer PC and data center products that will combine the best technologies from both companies. NVIDIA will invest 5 billion dollars in Intel common stock, acquiring a 4.9 percent stake in the company. This move makes NVIDIA one of Intel’s largest shareholders and signals a deep strategic alignment between the two leading chipmakers.
The collaboration focuses on two main areas. First, Intel will integrate NVIDIA’s RTX GPUs into its x86 system-on-chips (SoCs). These new chips will replace Intel’s own Arc GPUs in personal computing devices including laptops and desktops. This integration is expected to power millions of devices, providing high-quality graphics performance with Nvidia’s proven GPU technology embedded directly into Intel’s CPU designs. This marks a significant change for Intel, which previously explored partnerships with AMD for graphics integration but now puts NVIDIA GPUs at the core of its next-generation SoCs.
The second area of cooperation is Intel’s development of custom x86 CPUs for NVIDIA’s AI infrastructure platforms. These CPUs will be integrated into high-performance systems like DGX workstations, HGX servers, and NVIDIA SuperPODs that are used for artificial intelligence training and inference workloads. Intel’s upcoming Xeon processors, built on advanced manufacturing nodes, will be tailored to work seamlessly with NVIDIA accelerators. This will enable Intel to gain a larger market share in the AI hardware space, where NVIDIA previously used its own Arm-based CPUs alongside standard x86 processors.
Another key part of the agreement is NVIDIA’s use of Intel Foundry Services for manufacturing its future GPUs. NVIDIA plans to leverage Intel’s 18A and 14A process nodes and advanced packaging technologies, such as 3D stacking, to produce next-generation GPUs domestically in the United States. This strategy is partly aimed at bypassing global supply chain challenges that have affected overseas semiconductor production. Intel Foundry’s partnership with NVIDIA represents a major transformation of Intel’s foundry business, making NVIDIA a flagship customer with immense scale.
This partnership significantly intensifies competition in the semiconductor industry, especially against AMD. The move suggests AMD’s product portfolio is strong enough to drive a united front between Intel and NVIDIA on performance and innovation fronts. Intel’s stock price rose sharply following the announcement, reflecting investor confidence in the collaboration’s potential.
