NVIDIA to Invest $5 Billion Into Intel in Blockbuster Deal, Jointly Developing x86 SoCs With RTX Graphics
In a move that could reshape the semiconductor industry, NVIDIA and Intel have announced a landmark collaboration worth $5 billion, with both companies set to co-develop x86 system-on-chips (SoCs) featuring NVIDIA RTX graphics onboard. The deal, revealed through an official NVIDIA blog post, marks one of the most significant partnerships between two long-standing rivals in the CPU and GPU markets.
Under the agreement, NVIDIA will invest $5 billion into Intel’s common stock at $23.28 per share following regulatory approval. Intel, in turn, will manufacture customized x86 CPUs integrated with NVIDIA RTX GPU chiplets. These hybrid processors will target two distinct markets:
Data Centers:
Intel will build custom x86 CPUs designed for NVIDIA’s AI infrastructure platforms.
These CPUs will be integrated into NVIDIA’s cluster solutions to power next-generation AI workloads, offering a combination of Intel’s mature x86 compute architecture and NVIDIA’s dominant AI GPU technology.
Personal Computing:
Intel will produce x86 SoCs with onboard RTX GPU cores, effectively merging CPU and GPU into a single silicon package.
These SoCs are intended for high-performance PCs that demand seamless integration of CPU and GPU resources, promising performance gains across gaming, content creation, and AI-assisted personal computing.
This partnership signals a major breakthrough for Intel, which has struggled in recent years to maintain momentum in both consumer CPUs and data center products amid competition from AMD and Arm-based solutions. NVIDIA’s investment and technological collaboration are expected to boost market confidence in Intel, particularly in its ability to deliver competitive solutions in both AI and consumer segments.
For NVIDIA, the deal represents a bold step into CPU design beyond its own Arm-based Grace CPU. By leveraging Intel’s dominant position in the x86 ecosystem, NVIDIA ensures it can extend its reach into markets that remain heavily tied to the architecture, while also establishing a new path for delivering integrated RTX-powered CPUs directly to consumers.
The partnership is particularly notable given the historical rivalry between Intel and NVIDIA. Previous attempts at cooperation - such as licensing agreements - were limited in scope and often contentious. Now, with SoftBank’s recent investments in Intel and geopolitical pressure from the U.S. government to strengthen domestic semiconductor production, this deal underscores the shifting alliances in global chipmaking.
While specific product details remain under wraps, the announcement hints at a new class of consumer and enterprise processors that could rival AMD’s APUs and potentially threaten the traditional discrete GPU model for mid-range PCs. If successful, the integration of NVIDIA’s RTX GPU chiplets with Intel’s x86 CPUs could deliver unprecedented efficiency and performance in AI-driven applications, gaming, and professional workloads.
The first wave of co-developed products is expected to appear in the coming years, following regulatory approval and initial development cycles.
Do you think Intel and NVIDIA’s partnership will create a true competitor to AMD’s CPU-GPU ecosystem, or is this more about NVIDIA securing x86 relevance in AI and PC markets?
