why did nvidia invest in intel

why did nvidia invest in intel

1 hour ago 2
Nature

Nvidia invested $5 billion in Intel to form a strategic partnership aimed at jointly developing custom data center and personal computing products. The collaboration focuses on integrating Nvidia's AI and GPU technologies with Intel's CPUs and x86 ecosystem. Nvidia will use Intel's custom chips in its AI infrastructure, while Intel will incorporate Nvidia's GPU technology into its PC chips. This partnership is designed to enhance performance and broaden the ecosystems of both companies in the AI and computing sectors. It also strengthens Intel's position in manufacturing and product integration, potentially challenging competitors like AMD. Nvidia’s investment is also seen as a significant endorsement of Intel's turnaround efforts and offers Nvidia access to Intel’s established customer base and software ecosystem. This partnership and investment led to a significant surge in Intel's stock price shortly after the announcement.

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