NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang revealed that the company’s $5 billion investment and collaborative efforts with Intel Corp. (NASDAQ:INTC) were the result of nearly a year of discussions between the two firms.
- INTC stock soared Thursday. See all of the details here.
Nvidia plans to work with Intel to build AI data center systems that combine Intel's x86 processors with Nvidia's GPUs and networking products, according to CNBC.
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"We're going to become a very large customer of Intel CPUs, and we're going to be a large supplier of GPU chiplets into Intel," Huang said.
Details of the Partnership
Huang personally discussed the new deal with Intel CEO Lip-Bu Tan, describing Tan as a long-standing friend.
The agreement means Nvidia and Intel will work together to develop both data center and PC chips. Intel will produce CPUs for PCs and notebooks that integrate Nvidia's GPUs, expanding Intel's product offerings.
Huang confirmed that Nvidia's data center systems—which previously used Arm CPUs—will soon also support Intel's x86 CPUs, purchasing them from Intel and integrating them into AI supercomputers.
Nvidia will also provide its GPU technology for use in Intel chips for laptops and PCs, aiming at markets worth a combined $50 billion.
Technical and Strategic Goals
Nvidia intends to use Intel’s processors in future AI supercomputers, moving away from reliance on Arm chips in some systems.
In return, Intel's consumer chips will benefit from Nvidia's graphics innovations, broadening their appeal and reach.
While the current agreement focuses on product development, both companies left open the possibility of future manufacturing collaborations.
Price Action: INTC stock had its best day ever and was headed into the closing bell up 23.32% at $30.71, according to data from Benzinga Pro.
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