Nvidia Invests $5 Billion in Intel for NVLink CPU Deal

Key points

• Intel and Nvidia have announced a partnership to design CPUs with Nvidia’s NVLink high-speed chip interconnect, with Nvidia investing $5 billion in Intel stock.
• The partnership will focus on jointly developing custom data center and PC products, raising questions about the future of the UALink interconnect effort supported by 75 companies, including Microsoft.
• The deal offers pros and cons for IT buyers, with potential benefits for Intel’s GPU division and the development of new AI and accelerated computing technologies.

According to sources, Intel has announced a surprise partnership with Nvidia to design CPUs with Nvidia’s NVLink high-speed chip interconnect. This partnership comes just months after Intel committed to co-developing a competing interconnect, UALink, with AMD, Broadcom, and other tech companies. The two companies have also agreed to jointly develop multiple generations of custom data center and PC products, with Nvidia investing $5 billion in Intel stock as part of the agreement.

The focus on Nvidia’s NVLink raises questions about what will happen to the UALink effort, which was supported by 75 companies, including Microsoft, Google, and Meta. Anshel Sag, a principal analyst with Moor Insights & Strategy, said it’s unclear whether Intel will continue to support UALink in the long term. However, Sag noted that the partnership with Nvidia is a clear indication that Nvidia wants Intel to be around and doesn’t see it as a near-term or long-term threat in AI.

The deal offers both pros and cons for IT buyers, with potential benefits for Intel’s GPU division and the development of new AI and accelerated computing technologies. However, Sag noted that the future of Intel’s Arc GPU division is uncertain, and it’s unclear whether Intel will continue to invest in discrete graphics chips. The partnership also raises questions about whether Nvidia will shift some of its chip lines from TSMC to Intel fabs, which could help drive down costs and prop up Intel.

The alliance between Nvidia and Intel is noteworthy, given the companies’ history of bitter competition. However, Sag said that the partnership is a strategic move by Nvidia to keep Intel around and ensure that AMD remains competitive. The partnership also reflects the changing landscape of the tech industry, with companies increasingly forming alliances and partnerships to drive innovation and growth.

In a joint statement, Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan praised the partnership, saying it will expand their ecosystems and lay the foundation for the next era of computing. The partnership is expected to have a long-term impact, with Sag noting that it will be years before the full effects of the partnership are felt. Despite the potential benefits, Sag doubted that the partnership will have a significant impact on pricing, saying that the pricing impact is likely negligible.

Read the rest: Source Link

Don’t forget to check our list of Cheap Windows VPS Hosting providers, How to get Windows Server 2022, Try Windows 11 Pro for Workstations & browse Windows Azure content.

Remember to like our facebook and follow us on twitter @WindowsMode.