Nvidia–Intel pact marks new phase in AI, data centers, and the global chip race?
On September 18, the tech market was abuzz with historic news: Nvidia announced a $5 billion investment in Intel. Furthermore, the companies announced the start of joint development of x86-compatible processors. The investment was not direct, but instead came through the purchase of Intel shares at $23.28 per share, representing approximately 5% of the company’s capital. The deal triggered a surge in US stock trading and a notable rise in share prices. Intel jumped by 30%, while Nvidia stock rose by 3%.
Nvidia CEO Jensen Huang called the agreement an “incredible investment” and disclosed that negotiations had been underway for about a year. Intel’s Lip-Bu Tan emphasized that this collaboration will lay the foundation for a new era of computing.
According to the agreements, the companies will focus on several areas:
- Intel x86 RTX SoC processors with integrated Nvidia RTX GPUs for PCs and laptops. They will become direct competitors to AMD’s APUs and will be targeted primarily toward thin gaming laptops and compact desktop PCs.
- Specialized x86 CPUs for data centers. Intel will develop server processors for Nvidia tasks, including for hyperscalers and corporate clients.
- NVLink interface. CPU and GPU integration on a new bus with up to 14 times higher bandwidth than PCIe. This should create a new class of systems with unified memory access and significantly reduce latency.
Representatives from both companies have already hinted that such products may not reach the market until 2027, but are expected to serve as a bridge to the next stage of computing.
For Intel, the agreement with Nvidia was not just a partnership, but an opportunity to restart its business. The company has been losing ground in the competitive race for several years, especially against TSMC and AMD, and its ambitions in discrete graphics are materializing slowly. The support of major players has become vital. In recent months, Intel’s capital has already included investments from the US government ($8.9 billion), SoftBank ($2 billion), and Silver Lake (through Altera).
Against this background, Nvidia’s $5 billion is seen not simply as capital, but as a strong signal of confidence from one of the industry’s leaders. Moreover, Nvidia can provide Intel with a new role in the global AI computing ecosystem.
Despite the optimism, the deal remains complex:
- Production. Nvidia is not ready to place its chips in Intel factories right now. RTX chiplets will continue to be manufactured at TSMC, while Intel will handle packaging and integration.
- Competition. In the discrete graphics segment, the companies will remain rivals. Intel has stated that it will not abandon its own GPUs and will continue to develop them.
- ARM architectures. Nvidia emphasizes that its plans for developing Arm processors (Grace, Vera, GB10) will not change, and cooperation with Intel is an addition, not a replacement.
Analysts also point out that it is unclear whether Nvidia will secure a seat on Intel’s board of directors and what role it will play in management.
Personal relationships played a crucial role. Huang and Tan have known each other for more than 30 years, and their friendship, according to the Nvidia CEO, accelerated the negotiation process. In the future, the cooperation is expected to open up a new market of up to $50 billion, according to Nvidia’s estimates. If the companies can implement their plans, it will change the balance of power in the CPU-GPU segment and strengthen the US position in the technology race against Asia.
Market reactions showed that players perceive this partnership as a strong move for a strategic partnership, not just a token gesture. The deal expands Nvidia’s market reach and creates new monetization channels for AI solutions. For Intel, it’s an opportunity to overcome the crisis and attract more customers in the data center segment.