Today, Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan participated in a joint webcast to discuss Nvidia’s decision to invest $5 billion in Intel, a struggling competitor. This investment positions Nvidia, currently valued at $4.28 trillion, to potentially strengthen its market position.
During the webcast, Huang addressed various speculations regarding the partnership, including suggestions that it was influenced by former President Trump or that it represented a shift from Nvidia’s focus on Arm architecture to Intel’s x86 architecture. He reaffirmed Nvidia’s commitment to the Arm roadmap and its partnership with TSMC for chip manufacturing, indicating that the investment does not impact any ongoing strategies.
Huang mentioned the increasing competition posed by AMD, which has excelled in producing both CPUs and GPUs. He noted that Nvidia intends to target the integrated market segment where CPUs and GPUs coexist in a single chip—a segment he described as “underserved” by Nvidia at present. Nvidia is developing a new System on Chip (SoC) that aims to merge their RTX GPU with Intel CPUs, allowing for a new class of integrated laptops.
AMD has already made strides in this space with its products, particularly the Ryzen AI Max, which combines powerful integrated graphics and CPUs. Such innovations raise questions about whether Nvidia’s new direction could be seen as a direct response to AMD’s competitive edge.
Furthermore, Huang indicated that Nvidia would become a “major customer” for Intel’s server CPUs, moving away from its previously exclusive focus on its own Arm CPUs. However, both leaders remained vague about the specifics of manufacturing locations and technologies, especially regarding potential production in the United States, leaving industry observers curious about future developments.
Source: https://www.theverge.com/report/781330/nvidia-intel-explain-5-billion-deal-jensen-huang-lip-bu-tan-amd