Incredible partnership - Intel to release processor with built-in Nvidia video core

On September 18, NVIDIA and Intel announced a strategic partnership that includes the creation of Intel CPUs for Nvidia AI servers, as well as the release of custom Intel processors with Nvidia GPUs. This is no ordinary cooperation - Nvidia is investing $5 billion in Intel's common (non-voting) shares.

Both Jensen Huang and Lip-Bu Tan have already announced an unprecedented partnership of world-class leaders. Their joint press conference will take place in a few hours here.

Context.

For several quarters in a row, Intel has been showing a terrible financial condition with billions of dollars in losses. The company has frozen the construction of a new plant in Poland and laid off several hundred employees. The US government invested the largest amount in history in the company to save it. At the beginning of the year, Intel changed its CEO - instead of Pat Gelsinger, Lip-Bu Tan took over. Nvidia has repeatedly expressed interest in acquiring both the company as a whole and part of its production lines. Perhaps the company was not allowed to do so for antitrust reasons, as happened with the ARM acquisition initiative.

Interestingly, Lip-Bu Tan's own Intel Arc graphics line seems to have no future. He recently cut this division and froze its development. Successful cooperation with Nvidia will simply put an end to this development. From a business perspective, this is logical, as many decades of investment have not led to any financial success for the division or a significant market share. However, this will not only reduce competition, but also strengthen Nvidia's dominant position.