Nvidia has agreed to buy a $5 billion stake in Intel as part of a broader deal to together develop “multiple generations” of data center and PC products. Nvidia will acquire the Intel stock for $23.28 per share, a slight discount on the company’s previous trading price. According to Reuters, the deal would make Nvidia one of Intel’s largest shareholders, owning about 4% of the company. Intel shares were up as much as 30% in early trading on Thursday morning. The companies will integrate their two architectures using Nvidia’s NVLink interface, which enables data and control code transfers between CPUs and GPUs. NVLink enables faster transfers between chips compared with other standards like PCI Express; that’s crucial for AI applications, which require many GPUs to run together and process immense workloads. For data centers, Intel will manufacture a new line of x86 CPUs specifically customized for Nvidia’s AI infrastructure platforms, to be offered to enterprise and hyperscale customers. xFor the consumer PC segment, Intel will build x86 system-on-chips that will incorporate chiplets of Nvidia’s RTX GPUs, which will no doubt give Intel an edge over rival AMD’s CPUs. The companies are calling these chips “x86 RTX SoCs” at the moment, and claim these chips will power a “wide range of PCs.”

Full report : Nvidia to invest $5 billion in Intel; companies will collaborate on AI chips.