Nvidia set to inject US$5 billion into Intel's coffers, augmenting the chipmaker's efforts towards rejuvenation.
In a groundbreaking move for the semiconductor industry, Nvidia and Intel have announced a strategic partnership that promises to reshape the landscape of artificial intelligence (AI) systems.
The partnership, worth $5 billion, sees Nvidia investing in Intel to support the chip giant's efforts to regain its competitive edge, particularly in the AI sector. Nvidia's graphics processing units (GPUs) have become indispensable for AI systems, and this collaboration is expected to bolster Intel's position in this rapidly evolving market.
Jensen Huang, CEO of Nvidia, described the partnership as a fusion of two world-class platforms, while Dan Ives of Wedbush Securities hailed it as a game-changer for Intel. The deal is expected to bring Intel front and center into the AI game, addressing the company's struggles to develop competitive hardware for AI applications.
The news sent Intel shares soaring on Wall Street, with the stock closing at US$31.25 on Thursday, September 18, marking a more than 25% rise. The US government, which took a 10% equity stake in Intel last month, described the company as strategically vital. Intel also received support from Japanese investment giant SoftBank.
The partnership aims to expand both companies' ecosystems and lay the foundation for the next era of computing. The focus will be on developing custom data centre and PC products for AI applications, integrating Nvidia's AI technologies with Intel CPUs.
This move comes at a time when Taiwan's TSMC and South Korea's Samsung have cemented their dominance in the technology market. Nvidia's investment in Intel is a significant commitment to the US semiconductor industry and Intel's turnaround efforts.
The US government's preparedness to make interventions for strategically vital companies suggests that this partnership may have broader implications for the tech industry and the economy as a whole. As the world continues to rely heavily on AI for various applications, this partnership could pave the way for future collaborations and innovations in the field.
In conclusion, the partnership between Nvidia and Intel represents a significant step forward for both companies and the AI industry. With the potential to reshape the tech landscape and drive innovation, this collaboration is set to have far-reaching implications for the future of AI and computing.
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