Nvidia is investing $5 billion in Intel to co-develop AI and PC chips in a deal Huang calls “an incredible investment.”
Nvidia CEO Jensen Huang announced Thursday that the company is investing $5 billion in Intel as part of a technology collaboration to co-develop chips for data centers and personal computers. The agreement follows nearly a year of discussions between Huang and Intel CEO Lip-Bu Tan, whom Huang called a “longtime friend.”
“We thought it was going to be such an incredible investment,” Huang said on a call with reporters.
The companies will build AI systems combining Intel’s x86 CPUs with Nvidia GPUs and networking technology. Intel will also sell CPUs for PCs that integrate Nvidia graphics processors. Huang said, “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 chips.”
The deal underscores shifting fortunes in Silicon Valley, with Nvidia now valued at $4.25 trillion compared to Intel’s $143 billion.