Nvidia, world Leading manufacturer Of AI Chips, and the world’s most valuable company with one $ 4.2 trillion market cap, Announced On Thursday, it will invest $ 5 billion in the contestant Intel, which is comparatively low ($ 144.8 billion) Market price. Investment gives nvidia A 4% share In Intel.
This deal requires that Nvidia and Intel work together to create chips for individual computer and data centers. Intel is characteristic Central processing unitsOr chips that act as a computer brain, handle various general-purpose functions. On the other hand, Nvidia, focuses on making Graphics processing units This AI can process large amounts of data for more specific, intense functions such as development, gaming and video editing.
Connected: The CEO of Nvidia says that if you never learned the code, it does not matter: ‘There is a new programming language’
Both companies are now joining forces to make chips that manufacture chips in both areas of expertise. He intends to design chips connecting Nvidia’s AI strength with Intel’s central processing power-“A fusion of two world-class platforms,” said Jensen Huang, CEO of Nvidia In a press release,
“Together, we will expand our ecosystems and lay the foundation of the next era of computing,” Huang said in the release.
Jensen Huang, CEO of Nvidia. Johannes Neudecker/Photo through Getty images by the picture combination
Meanwhile, Vesabash researcher Dan Ewes Written in a note After the announcement that “this is a game-changer deal for Intel” which “brings them front and center in AI game.”
Intel was once an important player in the chip industry, but is Struggled to customize To transfer technologies such as mobile devices and AI.
Chipmaker faced important challenges, including Three consecutive years Contestants such as NVidia and AMD due to fall in revenue and market share. Nvidia captured between 70% to 95% of the AI chip market last year, compared to Intel compared to 1%, per. CNBC,
Intel has attempted to cut the cost, announcing sorting of 33,000 people at the beginning of this year, reduced their workforce to 75,000 employees.
Connected: Intel needs employees to work more often than the office: ‘This action is necessary’
In August, the US government announced that it was taking closer 10% stake in IntelInvestment of $ 8.9 billion for 433.3 million shares. At the time of writing, that stake is now $ 13.9 billion. Intel agreed last month Investment of $ 2 billion From Japanese holding company SoftBank.
In a press release, Intel CEO Lip-Bow Tan said the new partnership with Nvidia “will enable new successes for the industry.”
Tan said, “We appreciate confidence that Jensen and NVDia team have kept us with their investment.”
Intel share Growed up by about 30% Nvidia opened in Thursday’s market after news of investment, while NVIDIA stock About 3% rose,
Nvidia, world Leading manufacturer Of AI Chips, and the world’s most valuable company with one $ 4.2 trillion market cap, Announced On Thursday, it will invest $ 5 billion in the contestant Intel, which is comparatively low ($ 144.8 billion) Market price. Investment gives nvidia A 4% share In Intel.
This deal requires that Nvidia and Intel work together to create chips for individual computer and data centers. Intel is characteristic Central processing unitsOr chips that act as a computer brain, handle various general-purpose functions. On the other hand, Nvidia, focuses on making Graphics processing units This AI can process large amounts of data for more specific, intense functions such as development, gaming and video editing.
Connected: The CEO of Nvidia says that if you never learned the code, it does not matter: ‘There is a new programming language’
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