Introduction
An unprecedented partnership in the technology sector is set to revolutionize the x86 processor market. Nvidia and Intel have announced a strategic $5 billion collaboration that will create x86 processors with integrated RTX GPUs and custom data center CPUs.
Details of the Nvidia-Intel Partnership
The agreement involves joint development of multiple generations of x86 products, with Nvidia acquiring a 5% stake in Intel for $5 billion at $23.28 per share. The collaboration focuses on two main areas: "Intel x86 RTX SOC" processors for the gaming PC market and custom x86 CPUs for data centers targeting Nvidia's enterprise customers.
These new chips represent a significant evolution from traditional solutions, tightly integrating Intel CPUs and Nvidia GPUs through the NVLink interface, which offers up to 14 times more bandwidth than PCIe with reduced latency.
Intel x86 RTX SOCs for Gaming
The Intel x86 RTX SOC processors combine an x86 CPU chiplet with an Nvidia RTX GPU chiplet in a single compact package. This solution directly competes with AMD's APUs, offering advantages in power efficiency and footprint for thin gaming laptops and small form factor PCs.
Unlike Intel's previous Kaby Lake-G chips with AMD (discontinued in 2019), the new processors will use the NVLink interface and support uniform memory access (UMA), allowing both CPU and GPU to access the same memory pool.
Custom x86 CPUs for Data Centers
Intel will manufacture customized x86 processors for Nvidia's data centers, which will be sold directly by Nvidia to enterprise customers. These chips will integrate NVLink Fusion technology for more efficient communication with Nvidia GPUs compared to the traditional PCIe interface.
The customization could go beyond the standard clock and cache modifications Intel has historically offered to hyperscale customers, representing a significant evolution of Intel's IDM 2.0 strategy.
Strategic and Market Implications
This partnership comes at a crucial time for both companies. Intel is facing significant challenges with negative free cash flow and competitive pressure from AMD, while Nvidia consolidates its dominant position in AI and gaming GPUs (92% market share).
Nvidia's investment adds to the recent $9 billion from the US government (9.9% stake) and $2 billion from SoftBank, providing Intel with the capital needed for its manufacturing technology investments to compete with TSMC.
"AI is powering a new industrial revolution and reinventing every layer of the computing stack. This historic collaboration tightly couples Nvidia's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem."
Jensen Huang, Nvidia CEO
Future Prospects and Roadmap
The companies have emphasized commitment to multi-generational roadmaps, suggesting a long-term investment in the x86 ecosystem. Nvidia has specified that this partnership is additive to existing projects, including Arm-based Grace Blackwell processors and future Vera CPUs.
It's unclear whether Intel Foundry will produce these chips, although Intel is bringing high-performance processor production back to its own facilities with nodes like Intel 3 and the upcoming 18A.
Conclusion
The Nvidia-Intel partnership represents a fundamental shift in the processor landscape, with potential repercussions across the entire industry. The integration of market-leading technologies promises to accelerate innovation in both gaming and enterprise AI, while strengthening both companies' competitive position against rivals like AMD.
FAQ
When will x86 RTX processors reach the market?
The partnership is in early stages and release timelines haven't been specified. Given the complexity of developing new processors, it's reasonable to expect at least a year, likely longer.
How do x86 RTX chips differ from previous Kaby Lake-G?
The new chips will use the NVLink interface instead of PCIe and support uniform memory access (UMA), allowing CPU and GPU to share the same memory pool.
Will Nvidia abandon Arm-based processors?
No, Nvidia has confirmed continued commitment to Arm-based Grace Blackwell processors and other existing architectures. The x86 partnership is additive to current projects.
What advantage does NVLink interface offer over PCIe?
NVLink provides up to 14 times more bandwidth than PCIe with reduced latency, significantly improving performance in CPU-GPU communication.
Will Intel continue developing its own Xe GPUs?
Yes, Intel will maintain its proprietary Xe graphics architecture as the primary integrated GPU for mass-market products, while x86 RTX chips will have limited scope.
What role will Nvidia have in Intel's management?
With a 5% stake, Nvidia likely won't have a board seat. Details about voting on corporate matters haven't been specified yet.