Remember when Microsoft invested in Apple when Apple was down in the dumps? This is giving similar vibes. That deal was arguably what saved Apple near its nadir. I’m not a fan of Intel’s past monopolistic practices, but for the sake of sustaining competition in the CPU/GPU market, I hope this deal works out for them even half as well as the MS deal did for Apple.
Nvidia buys $5B in Intel
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Re: Nvidia buys $5B in Intel
#32I can think of _nothing_ with a better shot at unseating nvidia than a merger with intel. Fingers crossed for ever closer union between the two.
They aren’t merging - this is Nvidia ensuring their tech is in Intel chips.
Re: Nvidia buys $5B in Intel
#33What's the significance of $5B of stock? Does that mean controlling share in Intel?
It's written in the article that the $5B represents about 5% of Intel stock outstanding.
Re: Nvidia buys $5B in Intel
#34Nowadays I always wonder to what extent such deals are actually driven by market considerations and to what extent it's catering to the Trump administration. Token investments into this state enterprise named Intel seems to be a practical way to cater goodwill with the autocrats.
Re: Nvidia buys $5B in Intel
#35After the arm buyout fell through, I guess this is the next best thing. Plus a good deal for nvidia since Intel is pretty desperate at this point.
Re: Nvidia buys $5B in Intel
#36> For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.
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...
Re: Nvidia buys $5B in Intel
#37Precursor to full acquisition perhaps...also maybe Jensen play to Trump a bit in this.
If you wanted to acquire Intel you'd do it now. Maybe Intel's future products are garbage and they do worse - but the upside seems pretty high otherwise. This seems like a bit of a firesale price to acquire an advanced fab and CPU maker. Sure, it's Intel and they haven't been doing great, but companies with solid reliable outlooks don't trade this cheaply. Ofc I would kind of hope/expect antitrust to object given tha…
> If you wanted to acquire Intel you'd do it now.
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.
Re: Nvidia buys $5B in Intel
#38> It is unclear if Intel will issue new stock for Nvidia to purchase 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?
It’s the most important part of the story. It’s so gross that companies can just dilute and create stock out of thin air like this. Why hold stock in Intel if the only people that ever buy the real stock and create buy pressure are the plebs? Here is the previous time…
> 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
Re: Nvidia buys $5B in Intel
#39What's the significance of $5B of stock? Does that mean controlling share in Intel?
Article mentions it amounts to ~5% ownership
Re: Nvidia buys $5B in Intel
#405B 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, Nvi…
Who are NVidia's competitors? I thought they were the only game in town when it came to CUDA/AI chips.