Nvidia and Intel announce collaboration to develop AI-focused CPUs and GPUs

Nvidia

Nvidia (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) have announced a collaboration to develop multiple generations of custom data center and PC products. The partnership aims to accelerate workloads across hyperscale, enterprise, and consumer markets by connecting Nvidia and Intel architectures through Nvidia NVLink.

Under the agreement, Intel will produce Nvidia-custom x86 CPUs for data center applications. Nvidia will integrate these CPUs into its AI infrastructure platforms and offer them to customers. For personal computing, Intel will produce x86 system-on-chips (SOCs) that integrate Nvidia RTX GPU chiplets. These SOCs will be used in PCs that require integrated CPU and GPU components.

As part of the collaboration, Nvidia will invest $5 billion in Intel common stock at a price of $23.28 per share. The investment is subject to customary closing conditions, including regulatory approvals.

Nvidia founder and CEO Jensen Huang said the collaboration combines Nvidia’s AI and accelerated computing stack with Intel’s CPUs and x86 ecosystem. He added that the partnership will expand both companies’ ecosystems and provide a foundation for future computing platforms.

Intel CEO Lip-Bu Tan said Intel’s data center and client computing platforms, combined with its manufacturing and packaging capabilities, will work with Nvidia’s computing technologies to support AI workloads. He also thanked Nvidia for the investment and said the collaboration will enable development of new products for customers.

The partnership targets enterprise, hyperscale, and consumer markets. Nvidia and Intel plan to integrate the new CPUs and SOCs into systems designed for AI and accelerated computing applications.

A press conference with the CEOs of Nvidia and Intel will take place at 10 a.m. Pacific Time (1 p.m. Eastern Time) today. The webcast will be available for public access.

The collaboration marks a joint effort to combine Nvidia’s GPU and AI technologies with Intel’s CPU and x86 capabilities to provide computing platforms capable of handling AI and other workloads.