NVIDIA (NVDA) & Intel (INTC) announce collab on consumer PCs & AI development
NVIDIA and Intel have announced a major collaboration that will combine their technology and resources across several initiatives over the next few years. This partnership aims to develop new and improved AI datacenters, as well as a range of consumer PC products.
As part of the deal, NVIDIA will invest heavily in Intel by purchasing approximately $5 billion worth of Intel stock. This strategic investment underscores the commitment both companies have toward advancing technology together.
The news of this collaboration was officially shared in a press release on Intel’s newsroom webpage. Under the terms of the agreement, NVIDIA will provide Intel with advanced technology for building AI servers and datacenters, along with system-on-a-chip (SoC) components designed for new consumer PCs.
Specifically, NVIDIA will acquire Intel common stock at a price of $23.28 per share. However, this portion of the deal is still subject to closing conditions and requires approval from regulatory authorities.
Historically, NVIDIA has been a leader in the tech market, benefiting from its investments in AI hardware manufacturing as well as its consumer PC GPUs and CPUs. Meanwhile, Intel has faced challenges, struggling to keep pace with competitors in both the consumer market and the fields of datacenters and AI technology.
Intel’s situation slightly improved following the US government’s purchase of a 10 percent stake in the company. However, Intel has warned that this government investment could negatively impact its international sales and potentially dilute its shareholders.
On the other hand, NVIDIA is also navigating difficulties, facing strict regulations and restricted business operations in China despite its global market success.
This collaboration between NVIDIA and Intel represents a significant shift in the tech industry, combining the strengths of two major players to push forward innovation in AI and consumer technology. The outcome of this partnership is highly anticipated by industry analysts and consumers alike.
https://www.shacknews.com/article/146004/nvidia-nvda-intel-intc-collaboration
