One of Intel’s most valuable companies in the world throw a rescue line.
Nvidia, which has a market capitalization of USD 4.3 trillion, today said that she will invest $ 5 billion in Intel, a fighting American chip manufacturer, who was recently at the center of an unconventional investment agreement with the US government. Intel shares jumped by more than 30 percent after messages.
Two American chip manufacturers also enter the cooperation of products. Intel said in the early Thursday morning that “the leading Intel processor and the X86 ecosystem will be easily associated with NVIDIA artificial intelligence and accelerated computer capabilities using Nvlink”, referring to NVIDIA technology that connects CPU from the GPU.
Intel CEO LIP-BU TAN published a photo on X with co -founder Nvidia and CEO Jensen Huang. Tan wrote that he was excited to connect forces with his “good friend Jensen” to jointly develop non -standard data systems and computer systems.
In the press briefing, Huang emphasized that the contract would allow NVIDIA scaling of stand architecture systems that connect 72 GPU with non -standard processors. Huang also said that working with Intel means that NVIDIA can take a larger piece of the market for personal devices. “150 million laptops are sold in the year,” he said. “Now we are creating a system system that connects two processors into one giant SoC, which will become a new class of integrated laptops that the world has never seen before.”
Huang estimated that the contract is “$ 25 billion to $ 50 billion of an annual possibility.”
The NVIDIA investment comes on the heels of the US government, adopting about 10 percent of the Intel shares, transforming billions of dollars in chips’ files into a capital investment.
The US government again assesses export control that have circumscribed NVIDIA (and AMD) ability to sell advanced GPU to China. The administration recently said that it would grant the NVIDIA and AMD export license, enabling them to sell some China systems if companies gave the American government a reduction in influence.
Huang insisted that the Trump administration would not be involved in Nvidia’s conversations with Intel, which according to Huang has been going on for almost a year. “Trump’s administration was not involved in this partnership at all,” said Huang. “Of course they would be very supportive. Today I had the opportunity to say [Secretary of Commerce, Howard Lutnick]And he was very excited and supported that American technology companies were cooperating. “
Despite this, says Pat Moorhead, founder and main analyst at Moor Insights & Strategy: “I think NVIDIA is scoring points with administration by making this investment.”
“Moving the administration for participation in the company definitely gives impetus for Intel to attract more external investments, such as earlier investments from Softbank, and today Nvidia,” says Ray Wang, director of research on semiconductors and emerging Tech at Futurum Group.
Wang also noted that the initial announcement of the partnership between Intel and Nvidia did not mention the Intel services that offer the most advanced Chip design and production possibilities for Intel customers. NVIDIA is largely based on the Taiwan semiconductor semiconductors for these services. (TSMC also produces some of Intel chips.)