Nvidia will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals.
Intel Corporation shares were hovering around $31.87 on the Nasdaq around 7:44 AM ET (5:15 pm India time). The shares had settled at $24.90 on Wednesday, down 1.5%.
Ahead of the US stock market opening today, the company made this announcement in its filing to the exchanges.
Intel said that both companies will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink — integrating the strengths of NVIDIA’s AI and accelerated computing with Intel’s leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers.
For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market.For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets, the filing said, adding that these new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.Commenting on the development, Nvidia founder and CEO Jensen Huang said that AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software and at the heart of this reinvention is Nvidia’s CUDA architecture. “This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” the company filing said quoting Huang.
Meanwhile, Lip-Bu Tan, CEO of Intel said that Intel’s x86 architecture has been foundational to modern computing for decades — and the company is innovating across our portfolio to enable the workloads of the future. “Intel’s leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business,” Tan said.
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