Huang Nvidia calls $ 5 billion Intel Dake “incredible investment”

Nvidia Jensen CEO Jensen said he was $ 5 billion in investment cooperation and technology cooperation Intel It comes after two companies have been discussing for almost a year.

Juan said he personally talked to the Intel Lip-Bu Tan Partnership CEO. On Thursday he called Tan “a long -time friend” with journalists after the companies announced that Nvidia would jointly develop a data processing center and PC with Intel as part Investment deal. According to Tan call, he and Juan know each other for 30 years.

“We thought it would be such an incredible investment,” Juan said.

Nvidia He said he would collaborate with the chips manufacturer to create artificial intelligence systems for data centers that combine Central CPUs based on X86 Intel graphic processors and networks.

Intel The PC and Notebook processors will also be selling NVIDIA graphic processors or graphic processors.

It took a few months to come together to come together, Intel Greg Ernst wrote in LinkedIn pillarAdded that the agreement was reached on Saturday.

Investments emphasize how the success of both companies switched to the custom “Silicon Valley” as a result of the II blast, headed by the Chatgpt Openai in the late 2022.

In the last five years, Intel shares have fallen by 31.78%, while NVIDIA’s stocks increased by 1348% on Thursday. Nvidia costs more than $ 4.25 trillion, and Intel costs only $ 143 billion.

For decades, the most important part of the PC or server has been the CPU, and Intel reigned to the market of these chips. But the AI ​​infrastructure is like machines Thursday announced $ 4 billion Microsoft data processingOften two or more NVIDIA graphic processors are required for each processor.

Nvidia Ai Systems, like NVL72 used by Microsoft, go with Arm-The basis of the processors based on Intel X86, processors. Juan said Nvidia will soon support Intel’s processors in their NVLINK shelves for AI.

“We will buy these processors from Intel, and then we will connect it to Super Chips, which then become our computing knot, which then integrated into scale AI Supercomputer,” Juan said.

Huang also introduces GPU technology to GPU technology in the Intel chip, which is sent to laptops and PCs, which is a lack of market. In total, Juan said the markets for two products cost $ 50 billion.

“We will become a very large CPU Intel customer, and we will be a great GPU Chiplets provider in Intel,” he said.

Juan said the transaction with Intel would have “no” influence on NVIDIA’s business relationship with ARM.

An investment transaction on Thursday is focused on the relationship between NVIDIA and the Intel products department rather than its foundry. Both companies, however, did not rule out future foundy partnerships.

“We have always evaluated Intel’s foundry technology, and we will continue to do it, but today this ad concentrate on these custom processors,” Juan said. Nvidia is currently using Taiwanese semiconductor production company To make her chips.

The cooperation will use the Intel package, which is part of the chip production that occurs at the end of the process, and combines several components of the chip in one part that can be installed in the machines.

Tan said he was grateful for Nvidia’s trust.

“” I would like to thank Jensen for confidence in me, and our team and Intel will work very hard to make sure it’s good for you, “Tan said.

Last year, the Intel Council deleted preliminary CEO Pat Gelsinger from the cost growth in the production business and the company’s refusal to gain a foothold in AI chips. In MarchIntel named tan, Well -linked investor who appealed to the CHIP software, its new Cadence Design Systems.

Tan focused on reducing the cost and raising money in his short Intel leading position, even if the future of a company’s company -called Intel Foundry remains unclear.

In addition to $ 5 billion from NVIDIA and 8.9 billion dollars from the US Government, Intel is remove Investing of $ 2 billion from SoftBank sold most of the share In her subsidiary asic altera to Silver Lake for 3.3 billion and sold 1 billion dollars in stock From Mobileye, his subsidiary that is engaged in self -government.

Intel also reduced considerable staff by saying In July that it eliminates 15% of its labor by the end of the year.

The company develops its own chips and also produces them. It wants to produce chips for companies such as Nvidia or AppleBut you still need to secure them as customers. Analysts say signal that its technology is stable and ready for production.

But the advanced production of chips is expensive, and Intel signaled that if it cannot get enough customers, it cannot continue to invest in its false plant. This can cause Washington’s reaction whose politicians and lobbyists consider Intel strategically important for the nation because it is the only American company capable of producing the most up -to -date chips.

In August, the Trump administration accepted 10% of Intel shares. Earlier, Intel was in line to get $ 8.9 billion of grants and loans from the law on chips, but Trump’s administration asked and received a promotional promotion in exchange for money.

This week, Juan was with Trump in England to attend a state dinner at the Windsor Palace and announced new projects and investments in the UK, but the Trump administration did not participate in this transaction, the White House and Juan official reports.

“Intel’s new partnership with Nvidia is the main milestone for American high-tech production,” said the White House spokesman Kush in a statement.

– Megan Casel CNBC has contributed to this story

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