Nvidia has unveiled plans to invest $5 billion into a partnership with Intel. This collaboration will see the two companies jointly develop customer data centre and PC products.
Nvidia stated it would invest the sum in Intel’s common stock at a purchase price of $23.28 per share, subject to customary closing conditions including regulatory approval.
The sum is higher than the $20.47 price the US government paid for a 10 per cent stake in the company last month, amounting to an investment worth close to $9 billion.
With the investment, Nvidia will take around a 4 per cent stake in Intel, after new shares are issued to complete the deal.
As part of the agreement, Nvidia will work to bring products to market that “accelerate applications and workloads across hyperscale, enterprise and [the] consumer market”.
The pair will focus on seamlessly connecting respective architectures, combining Nvidia’s AI and accelerated computing capabilities with Intel’s CPU and x86 ecosystem.
In the data centre segment, Intel will build custom x86 CPUs, which Nvidia will integrate into its AI infrastructure platforms and offer out to market.
Jensen Huang, CEO of Nvidia, described the partnership as a “historic collaboration” and fusion of two world class platforms. “Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Intel counterpart Lip Bu Tan added the company was grateful for the “confidence Jensen and the Nvidia team have placed in us with their investment”.
Source: Mobile World Live
Image Credit: Nvidia
