Intel Nvidia NVLink CPU Deal – $5 Billion Investment
- Nvidia and Intel have announced a collaborative effort to develop and manufacture AI chips, a move initially met with a largely positive response.
- Industry analyst karl Sag of Sag Reseach stated the partnership is "unprecedented" and signals Nvidia does not view Intel as a significant AI threat in the near or...
- The agreement presents both advantages and disadvantages for IT buyers.
Nvidia and intel Forge AI Chip Partnership
Table of Contents
Updated September 18, 2025, 18:57:29
Deal Overview
Nvidia and Intel have announced a collaborative effort to develop and manufacture AI chips, a move initially met with a largely positive response. Intel’s stock experienced an initial surge following teh announcement before partially retracting,according to reports.
Industry analyst karl Sag of Sag Reseach stated the partnership is “unprecedented” and signals Nvidia does not view Intel as a significant AI threat in the near or long term. Sag also suggested the deal could strategically keep AMD competitive according to Network World.
Impact on IT Buyers and Intel’s GPU division
The agreement presents both advantages and disadvantages for IT buyers. Sag noted the impact on intel’s GPU division is unclear, but speculated that it could lead to improved integrated Intel-Nvidia solutions, which are already common.
The future of Intel’s Arc graphics processing unit appears uncertain, though Sag believes Intel will likely continue to invest in GPU intellectual property. He questioned whether investment will continue for discrete graphics chips as reported by Computerworld.
Manufacturing Details
Intel will manufacture the co-developed chips, but the companies have not indicated any plans for Nvidia to shift other chip production from TSMC to intel’s fabrication plants (fabs).
Sag expressed surprise at the lack of a foundry component to the deal, suggesting it could have helped Nvidia reduce costs and support Intel’s manufacturing capabilities.