Nvidia invests $5B in Intel SoC partnership

Nvidia is investing $5 billion in Intel common stock as part of a new collaboration to “jointly develop multiple generations of custom data center and PC products.” As described by Nvidia, Intel will help build x86 system-on-chips (SoCs) that integrate Nvidia RTX GPU chiplets — effectively combining Intel CPUs and Nvidia GPUs more tightly on single SoC designs aimed at a wide range of PCs and data-center products.

The deal also covers system connectivity: Nvidia and Intel plan to link their architectures using Nvidia’s NVLink communications system used in data centers. Nvidia says “Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market.” Nvidia CEO Jensen Huang called the move a “fusion of two world-class platforms,” saying it will “lay the foundation for the next era of computing.”

The partnership is positioned to strengthen both companies against AMD, which has been advancing in gaming and AI laptop processors, and it raises questions about the future of Intel’s Arc GPU business. The investment follows other recent capital injections into Intel — including a ~10% US government stake (~$8.9B) and SoftBank’s $2B — and Intel’s stock jumped about 28% in pre-market trading after Nvidia’s announcement.