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Nvidia buys $5B in Intel

tomshardware.com

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Re: Nvidia buys $5B in Intel

#21

Post by Panzer04 »

sho_hn wrote: post #13

nVidia has also been licensing their GPU IP to MediaTek recently, who are working on a 2nd generation of a SoC that combines their ARM cores with nVidia GPUs now, catering to e.g. the automotive market. 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…

Unless Nvidia outright absorbs intel I think Intel would have to be kind of crazy to stop developing GPUs.

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.

Re: Nvidia buys $5B in Intel

#22

Post by 9cb14c1ec0 »

ur-whale wrote: post #7

5B is a fairly tiny stake (Intel's market cap is around 120B), other than the "we're now working together" signal, why is this news?

It's a good deal for Nvidia, because custom x86 server CPUs have optimization potential for AI computing clusters, which matters now that Nvidia has competitors that they didn't just 2 years ago. I think that the next several years of Nvidia will be ones of fending off growing competition.

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.

Re: Nvidia buys $5B in Intel

#23

Post by kypro »

bobajeff wrote: post #16

What's the significance of $5B of stock? Does that mean controlling share in Intel?

No, but it's still a big stake from the largest player in semis. You wouldn't expect a move like that if they didn't see an opportunity there.

Re: Nvidia buys $5B in Intel

#24

Post by sho_hn »

Panzer04 wrote: post #21
sho_hn wrote: post #13

nVidia has also been licensing their GPU IP to MediaTek recently, who are working on a 2nd generation of a SoC that combines their ARM cores with nVidia GPUs now, catering to e.g. the automotive market. 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…

Unless Nvidia outright absorbs intel I think Intel would have to be kind of crazy to stop developing GPUs. 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.

I'd agree, but Intel has also halted dGPU development efforts before, cf. the canned Larrabee project. Which was more troubled on the technology side however.

Re: Nvidia buys $5B in Intel

#25

Post by amalcon »

Panzer04 wrote: post #15
ur-whale wrote: post #7

5B is a fairly tiny stake (Intel's market cap is around 120B), other than the "we're now working together" signal, why is this news?

tbf, If I were Nvidia and antitrust wasn't an issue I'd be tempted to buy the whole thing. 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.

There are two scenarios here. In one, the AI bubble bursts (so Nvidia is overpriced now) and almost any value stock deal is good for them. In the other, it doesn't, and this gives them a limited hedge against problems with their most critical strategic partner (TSMC).

It looks like a good deal either way and in any amount. But of course I am no expert.

Re: Nvidia buys $5B in Intel

#27

Post by fidotron »

Possibly more curious than the investment:

> 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.

Re: Nvidia buys $5B in Intel

#28

Post by onlyrealcuzzo »

kypro wrote: post #23
bobajeff wrote: post #16

What's the significance of $5B of stock? Does that mean controlling share in Intel?

No, but it's still a big stake from the largest player in semis. You wouldn't expect a move like that if they didn't see an opportunity there.

Seems like when Microsoft invested in Apple to keep Apple from going out of business and turning Microsoft into a potential Monopoly.

Re: Nvidia buys $5B in Intel

#30

Post by delfinom »

hvb2 wrote: post #11
monkeydust wrote: post #2

Precursor to full acquisition perhaps...also maybe Jensen play to Trump a bit in this.

It would be 100% Trump to have Nvidia buy Intel and then announce how good of an investment decision he made by buying a slice of intel. USA, where the federal government is picking winners and losers by making risky stock bets with public money.

Not even the government at this point. The oligarchs are now in full control of the US and are dividing up their kingdoms. The plans for glulags for detractors are also being placed.
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