Nvidia’s Huang calls $5 billion Intel stake ‘an incredible investment’
NVIDIA CEO Jensen Huang joined the “AI race” summit on 23 July 2025 at Washington DC.
Kent Nishimura | Reuters
Nvidia CEO Jensen Huang, the company’s $ 5 billion investment and technology cooperation Intel It comes after the two companies have discussed for about a year.
Huang said that he personally communicated with Intel CEO Lip-Bu Tan about the partnership. Companies, as part of NVIDIA’s investment agreement, announced that it would improve the data center and PC chips together, and on Thursday, journalists described the “friend” for a long time. Tan, Huang and Huang have known each other for 30 years.
Huang said, “We thought this would be an incredible investment.” He said.
Nvidia He said Intel’s X86 -based central processors will cooperate with the chip manufacturer to create artificial intelligence systems for NVIDIA’s graphic processors and data centers that combine network creation.
Intel It will also sell NVIDIA graphics processors or GPUs for PCs and CPUs for laptops.
It took a few months for the transaction itself to come together, Intel’s income chief Greg Ernst wrote in LinkedIn postHe added that the agreement was reached on Saturday.
Investment emphasizes how the reserves of the two companies have passed on the Silicon Valley’s beak order as a result of the AI explosion initiated by the Launch of the Chatgpt in late 2022.
Intel shares decreased by 31.78% in the last five years, while Nvidia shares increased by 1.348% due to their opening prices on Thursday. Nvidia is over 4.25 trillion dollars, and Intel is only worth 143 billion dollars.
How will Intel and Nvidia cooperate
For decades, the most important part of a PC or server was the central processor, and Intel dominated the market for these chips. However, AI infrastructure, such as machines The $ 4 billion data center Microsoft announced on Thursday, usually required two or more NVIDIA GPUs for each CPU.
It comes with NVIDIA AI systems such as NVL72 used by Microsoft. Arm-Tel X86 -based CPUs are based CPUs. Upon the call, Huang said that Nvidia would soon support Intel’s CPUs on the Nvlink shelves for AI.
“We will buy these CPUs from Intel, and then connect a shelf scale to the super -chips that are integrated into the AI super computer,” Huang said. He said.
Huang said that NVIDIA will contribute to GPU technology on Intel chips sent on laptops and PCs, a market that receives insufficient service. In total, Huang said that two -product cooperation is worth $ 50 billion.
“We will be a very large customer of Intel CPUs and we will be a great GPU Chiplets supplier to Intel,” he said.
Huang said that the agreement with Intel would have a “no” effect on Nvidia’s business relationship with ARM.
The Investment Agreement on Thursday focuses on the relationship between the product section, not the Foundri of NVIDIA and Intel. However, the two companies did not exclude future Foundry partnerships.
“We have always evaluated Intel’s Foundry technology and we will continue to do so, but today this announcement focuses on these special CPUs.” He said. Nvidia is currently using Taiwan semiconductor production company To produce their chips.
Cooperation will use Intel’s packaging, which will be a piece of chip production that occurs towards the end of the process and combines several chip components into a single part that can be mounted on machines.
Intel CEO Lip-Bu Tan made a speech on the stage in Taipei, Taivan, on 19 May 2025.
Ann Wang | Reuters
Tan said that Nvidia was grateful for the vote of trust.
“I want to thank Jensen for trusting, and our team and Intel will really work hard to ensure that there is a good turn for you.” He said.
Last year, Intel’s board lifted the previous CEO Pat Gelsinger because the increasing costs in production and the lack of a basis for the company’s AI chips. In March, Intel named Tan, a well -connected investor who revolves around the new General Manager Chip Software Company Cadence Design Systems.
Tan focused on reducing costs and gathering money to the leading Intel in his short position, even while maintaining the uncertainty of the future of the production business called Intel Foundry.
He received an investment of $ 5 billion from NVIDIA and an investment of $ 2 billion from the US government and $ 8.9 billion from Intel Softbank. Majority share Sold for 3.3 billion dollars in Silver Lake to Silver Lake in ASIC Participation 1 billion dollars in stock Mobilke, a self -esteem of self -esteem.
Intel, in July, 15% of the labor force by the end of the year, saying that the important staff cut.
The company develops and produces its own chips. He wants to produce chips for companies like NVIDIA or AppleHowever, he has not yet secured them as a customer. Analysts say that Intel needs a large Foundry customer to indicate that the technology of Intel is stable and ready for volume production.
However, the newest chip production is expensive and Intel pointed out that if he cannot get enough customers, he cannot continue to invest in his document. This can react to Washington, which sees politicians and lobbyists strategically important for the nation, because it is the only American company that can produce the most advanced chips.
The Trump administration received a 10% share in Intel in August. Intel previously ranked to get $ 8.9 billion grants and loans from the Cips Law, but the Trump administration took a stock in the chip manufacturer for money.
Huang was with Trump this week to attend a state dinner at Windsor Palace and make new projects and investments in the UK, but according to a White House official and Huang, the Trump administration did not participate in this agreement.
“Intel’s new partnership with Nvidia is an important milestone for American high -tech production,” White House spokesman Kush Desai said. He said.
– Megan Cassella from CNBC contributed to this story
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