Intel has just received a massive investment from an unexpected partner: Nvidia. Team Green has spent $5 billion to purchase Intel common stock at $23.28 per share. This is part of a partnership agreement to co-develop a new line of System-on-Chip (SoC) solutions – Intel x86 RTX SoCs – integrating Intel CPUs and Nvidia RTX GPUs, targeting various PC segments, especially the gaming market. Additionally, Intel will design custom x86 CPUs for data centers to be used in Nvidia’s AI platforms.
Intel x86 RTX SoC: Combining CPU and GPU for Gaming PCs
According to Intel, this new SoC line will serve PCs that require a tight integration of top-tier CPU performance and RTX GPU power. While official information regarding pricing, configurations, or release dates is not yet available, these details are expected to be announced in an upcoming joint press conference.
The highlight of this collaboration lies in the use of Nvidia’s NVLink interconnect protocol to link the CPU and GPU. NVLink provides superior bandwidth and much lower latency compared to traditional PCIe. For example, the Grace CPU superchip with NVLink-C2C can achieve GPU interconnect speeds of up to 900 GB/s. When Intel’s x86 CPU combines with an RTX GPU via NVLink, the performance promises to be a formidable rival to AMD’s APUs, which have long held the advantage in this segment. It is highly likely that Intel x Nvidia SoCs will be utilized in gaming laptops and other high-performance devices.
This new product line is reminiscent of Kaby Lake-G in 2017, when Intel combined Kaby Lake processing cores with AMD’s Radeon Vega graphics in a single chip. However, limitations in thermal management, high TDP levels (65W and 100W), and low OEM adoption caused Kaby Lake-G to be quickly discontinued in 2019. With the partnership with Nvidia and the utilization of NVLink, Intel seems to be looking to rewrite that story toward a more successful outcome.
Strategic Partnership between Nvidia and Intel
Beyond SoC development, the agreement indicates that Intel will manufacture custom x86 CPUs for Nvidia, serving the growing demands in the AI and data center sectors. This shows that both companies are seeking to leverage each other’s strengths to expand their positions in key market segments.
Nvidia’s $5 billion investment in Intel was executed at approximately 6% below market price. It remains unclear how much this investment will influence Intel’s business decisions, and the deal is still awaiting regulatory approval.
This agreement comes as Intel has also recently received significant investment from the US government. Last August, President Donald Trump announced that the US government would hold a 9.9% stake in Intel, equivalent to $8.9 billion. Of this, $5.7 billion comes from undisbursed grants from the CHIPS and Science Act, and $3.2 billion from the Secure Enclave program. Previously, Softbank also purchased an additional $2 billion in Intel stock.
With a series of investments and strategic alliances, Intel and Nvidia are making a big bet on a future where AI, PC gaming, and data centers will be the decisive battlegrounds.
