NVIDIA is joining forces with Intel – the green team announced a $5 billion investment in the blue team and signed a long-term cooperation agreement. In the future, the corporations are preparing to produce hybrid chips and work on AI technology.
The partnership is expected to be a game changer for the entire industry, as both companies plan to jointly develop a new generation of hybrid chips for personal computers and data centres. NVIDIA will acquire Intel shares at a price of £23.28 per share.
As a result of the deal, the company will acquire approximately 4–5% of Intel's shares, becoming one of the corporation's largest shareholders. Intel will work on custom x86 processors for NVIDIA data centres, as well as hybrid SoCs with RTX graphics modules for PCs.
This news came in handy for Intel – the manufacturer's shares soared in price by 30%. Analysts note that this is one of the biggest jumps for Intel in recent years. The collaboration with Nvidia will allow the latter to strengthen its position in the CPU market and integrate its GPUs into PC solutions. For Intel, this is an opportunity to strengthen its market position after several unstable years. With a new stable investor and technology partner, the company will be able to expand its market influence and change the current balance.