As customer they get better access to Intel Foundry and can offload some capacity from TSMC.
As I understand it the government's shares are non-voting.
Intel has a market cap just 2.5% of NVDA, so you could give away just 2.5% of your stock to buy the entirety of Intel. It's bonkers.
It looks like a good deal either way and in any amount. But of course I am no expert.
They basically baked in a massive investment profit into the deal. When you factor in the stock jump since this announcement, Nvidia has already made billions.
[0]: <https://www.fudzilla.com/6882-nvidia-continues-comic-campaig...>
Erm, a rather important point to bury down the story. The fiest question on anyone’s lips will be is this $5bn to build new chip technology, or $5bn for employees to spend on yachts?
> Intel stock experienced dilution because the U.S. government converted CHIPS Act grants into an equity stake, acquiring a significant ownership percentage at a discounted price, which increased the total number of outstanding shares and reduced existing shareholders' ownership percentage, according to The Motley Fool and Investing.com. This led to roughly 11% dilution for existing shareholders
Intel is up 30% pre market on this news so I think the existing shareholders will be fine.
Looks like using GPU IP to take over other brands' product lines is now officially an nVidia strategy.
I guess the obvious worry here is whether Intel will continue development of their own dGPUs, which have a lovely open driver stack.
So long as the AI craze is hanging in there it feels like having that expertise and IP is going to have high potential upside.
Would be foolish to throw that away now that they're finally getting closer to "a product someone may want to buy" with things like B50 and B60.
> Nvidia will also have Intel build custom x86 data center CPUs for its AI products for hyperscale and enterprise customers.
Hell has frozen over at Intel. Actually listening to people that want to buy your stuff, whatever next? Presumably someone over there doesn't want the AI wave to turn into a repeat of their famous success with mobile.
In the event Intel ever do get US based fabrication semi competitive again (and the national security motivation for doing so is intense) nVidia will likely have to be a major customer, so this does make sense. I remain doubtful that Intel can pull it off, and it will have to come from someone else.
This is very likely the new culture that LBT is bringing in. This can only be good.
Intel was well on its way to be a considerable threat to NVIDIA with their Arc line of GPUs, which are getting better and cheaper with each generation. Perhaps not in the enterprise and AI markets yet, but certainly on the consumer side.
This news muddies this approach, and I see it as a misstep for both Intel and for consumers. Intel is only helping NVIDIA, which puts them further away from unseating them than they were before.
Competition is always a net positive for consumers, while mergers are always a net negative. This news will only benefit shareholders of both companies, and Intel shareholders only in the short-term. In the long-term, it's making NVIDIA more powerful.
I think this partnership will damage nvidia. It might damage intel, but given they're circling the drain already, it's hard to make matters worse.
It's probably bad for consumers in every dimension.
Or to take the opposite, if nvidia rolled over intel and fired essentially everyone in the management chain and started trying to run the fabs themselves, good chance they'd turn the ship around and become even more powerful than they already are.
Intel isn’t at that point, but the companies trajectory isn’t looking good. I’d happily sacrifice ARC to keep a duopoly in CPU’s.
- a bigger R&D budget for their main competitor in the GPU market
- since Nvidia doesn't have their own CPUs, they risk becoming more dependent on their main competitor for total system performance.
https://www.intc.com/news-events/press-releases/detail/1750/...
What’s old is new again: back in 2017, Intel tried something similar with AMD (Kaby Lake-G). They paired a Kaby Lake CPU with a Vega GPU and HBM, but the product flopped: https://www.tomshardware.com/news/intel-discontinue-kaby-lak...
https://www.intc.com/news-events/press-releases/detail/1748/...
Seems to be an easy bet, if for no other reason than to make the US Government (Trump) happy. Trump gets to tout his +30% return on investment.
I don't like the idea of using Intel given their lack of disclosure for Spectre/Meltdown and some of their practices (towards AMD)
monkeydust•1h ago
amo1111•1h ago
hvb2•51m ago
USA, where the federal government is picking winners and losers by making risky stock bets with public money.
delfinom•36m ago
geertj•9m ago
This needlessly divisive and devoid of any factual basis. No gulags will exist and you know it.
Panzer04•46m ago
Ofc I would kind of hope/expect antitrust to object given that Intel makes both GPUs and CPUs, and Nvidia is/has dipped their toes into CPU production as well.
fidotron•33m ago
Intel still has to go through a lot of reorg (i.e. massive cuts) to get to a happy place, and this is what their succession of CEOs have been procrastinating over.
baq•14m ago