Does Nvidia’s stunning $ 5 billion Intel Bet means Enterprise AI and Next-Jen Laptop

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Key takeaways of zdnet

• Intel’s X86 technology helps Nvidia in Enterprise AI.
• Custom chips for laptops will integrate the technology of both companies.
• Nvidia refused to say whether it was ever planned to use Intel’s factories.

The struggling chip manufacturer Intel on Thursday found an important lifeline from rival Nvidia. AI chip huge Announced This will invest $ 5 billion in Intel and Partner to develop chips based on Intel’s X86 microprocessor standard.

The move is seen in a way for Nvidia to make more of its edge wide with artificial intelligence by reaching more enterprises that rely on the X86 technology to run their IT system.

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Intel stock rose 24% this year from close to Wednesday, but the announcement increased its shares by 23% in Thursday afternoon trading.

During a conference call on Thursday afternoon to discuss the deal, Nvidia CEO Jensen Huang said that NVidia plans to be a “major customer” for Intel’s Intel’s Intel’s Intel CPU.

“I think it is safe to say that the partnership we are entering is going to address some $ 25-50 billion annual opportunity,” Huang said.

To date, NVIDIA has created its own microprocessors, Grace CPUs, which is on licensed technology from arm holdings, which develops intellectual property used about every chip maker in the world.

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Most of the world’s computing can be very neatly divided into devices that run some types of ARM CPUs “core”, such as NVidia’s Grace Chip or Apple’s “A-Series” Silicon, and Intel’s X86 for iPhone, and the equipment built around the X86 of Intel, including PC and server from the Equipment Miscuits Buying Etels and AMD chips.

Was Nvidia Sour on hand?

Some chip-industry supervisors suggest that Nvidia has become sour on relationships with hand as the Japanese group SoftBank group owned hand, indicating that it intends to build its AI chips, which can compete with NVidia’s GPU franchise.

More immediately, the huge success of selling AI chips of Nvidia to Amazon, Oracle and other giants’ cloud data centers is still translating a large quantity of sales in corporate data centers, where ARM-based chips have never made a lot.

“For the X86 ecosystem, it is actually unavailable in addition to the server CPU on the PCI Express,” HANANG said about AI Computer such as NVLINK -72, NVDia’s biggest design for data center computers.

“The first occasion is that now we can integrate it directly into the Nvlink ecosystem with the Intel X86 CPU and create these rack-scale AI supercomputers.”

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In addition to the data center machines, Huang said that a integrated CPU-GPU part laptop computer from Nvidia and Intel would never be seen before.

Custom chips for laptop

He said, “Secondly, 150 million laptops are sold per year, and the market of Nvidia is largely targeted in gaming and workstation markets where the asat GPU is used,” he said. “We are very successful there, we keep growing there, and we are growing there. There is a whole section of the market where CPU and GPU are integrated, and this form is integrated for the reasons, perhaps it is for reasons, perhaps it is for reasons, it is for reasons, for all types of reasons. All types of different reasons. This section is ignored today by NVDia.”

Intel and Nvidia, released Huang, “are building an SOC that fuses two processors. It fuses the CPU and NVDia’s GPU, RTX GPU, which is using NVLINC. It is a mandatory -fingened graphics leaps in a compulsory graphics. The square will be formed which had never been seen before the world. “

Huang dismissed questions about whether Nvidia Intel’s Chip would become a customer of Foundry – one of the largest factories in the world, but mostly dedicated to Intel’s own chips.

“We have always evaluated Intel’s foundry technology, and we will continue to do so.”

Intel’s sales have been in decline for many years as its GPU chips failed to compete effectively with Nvidia, making the AI ​​wave disappear. Intel has also given AMD market share over the years, which has become a more major seller of the X86 CPU to be with NVidia GPU in AI computers.

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Intel’s CEO Lip-Bow Tan came on board in March, promised a major restructure to restore Intel as a fast growing startup company to restore it into its original profile. Tan replaced Pat Gailinger, which was excluded last year after the Intel Board of Directors were sour out of their efforts to change the company.

Historical cooperation

In Thursday’s briefing with Huang, Tan praised the Nvidia chief, known for more than 30 years.

“I have to salute him,” said Huang’s Tan. “He has created a great job that the AI ​​platform is running the entire new market opportunity. I am able to work closely with Jensen to create a new era.

“This is a historical collaboration between the two companies,” Tan said, “and I think it’s a very large, important milestone. We are proud that Nvidia is an investor in Intel, and thanks for supporting and trusting us.”

Last month, the US government took 10% stake in Intel, an unprecedented step for the government’s participation in a profit corporation.

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Huang of Nvidia said that the administration of US President Donald Trump did not “participate” in his investment in Intel. He said that American Commerce Secretary Howard Lutnic was “very excited” about the investment.

At the concluding price of Wednesday, Intel was priced at $ 116 billion, making Nvidia an investment of $ 5 billion to 4% of the company.