Nvidia CEO Jensen Huang<\/a> on Wednesday.<\/p>\nNew opening<\/p>\n
Nvidia\u2019s latest investment will make it one of Intel\u2019s largest shareholders, likely owning 4 percent or more of the company after new shares are issued to complete the deal.<\/p>\n
Nvidia\u2019s support represents a new opening for Intel after years of turnaround efforts at the famed US manufacturer failed to pay off.<\/p>\n
Intel \u2013 once the chip industry\u2019s flagbearer that claimed to put the \u201csilicon\u201d in Silicon Valley \u2013 appointed a new CEO, Lip-Bu Tan, in March. Tan has promised to make Intel\u2019s operation lean and build factory capacity only when there\u2019s demand to match it.<\/p>\n
Crucially, the deal will not involve Intel\u2019s contract manufacturing business, known as a \u201cfoundry\u201d in the chip industry, making chips for Nvidia. Most analysts believe that for Intel\u2019s foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom.<\/p>\n
But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2bn investment from Softbank and received $5.7bn from the US government.<\/p>\n
David Zinsner, Intel\u2019s chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a \u201cgood cash position\u201d and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building.<\/p>\n
Under the deal announced Thursday, Intel is planning to design custom data-centre central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before.<\/p>\n
Those speedy links are a key differentiator in the AI market because many chips must be strung together to act as one to chew through massive amounts of data.<\/p>\n
At present, Nvidia\u2019s best-selling AI servers with those speedy links are only available using Nvidia\u2019s own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server.<\/p>\n
On Wall Street, Nvidia\u2019s stock is trending upwards. As of 12pm in New York (16:00 GMT), it is up more than 3.4 percent from the market open. Intel stock is surging up more than 29 percent for the day.<\/p>\n","protected":false},"excerpt":{"rendered":"The White House denies any involvement with the deal despite Nvidia\u2019s CEO meeting US President Donald Trump only…\n","protected":false},"author":2,"featured_media":434786,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[51,12633,32,1700,3058,12,8272,53,1219,16,15,49,286],"class_list":{"0":"post-434785","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-business-and-economy","10":"tag-donald-trump","11":"tag-economy","12":"tag-international-trade","13":"tag-news","14":"tag-science-and-technology","15":"tag-technology","16":"tag-trade-war","17":"tag-uk","18":"tag-united-kingdom","19":"tag-united-states","20":"tag-us-canada"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115228060223610018","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/434785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=434785"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/434785\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/434786"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=434785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=434785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=434785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}