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Nvidia buys $5B in Intel

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Re: Nvidia buys $5B in Intel

#231

Post by overfeed »

benced wrote: post #205
littlecranky67 wrote: post #167

This is a death blow to the Intel GPU+AI efforts and should not be allowed by the regulators. It is clear that Intel needs the downstream, low-cost GPU market segment to have a portfolio of AI chips based on chiplets, where most defective ones end up in the consumer grade GPUs based on manufacturing yield. NVidias interest is now for Intel not to enter either the GPU market, nor the AI market - which Intel was prepar…

The likelihood intel AI was going to catch up with efforts like AWS Trainium, let alone Nvidia was already vanishingly small. This gives intel a chance at maintaining leading edge fab technologies. I feel bad for gamers - I’ve been considering buying a B580 - but honestly the consumer welfare of that market is a complete sidenote.

> The likelihood intel AI was going to catch up with efforts like AWS Trainium, let alone Nvidia

...and yet Nvidia is not gambling with the odds. Intel could have challenged Nvidia on performance-per-dollar or per watt, even if they failed to match performance in absolute terms (see AMD's Zen 1 vs Intel)

Re: Nvidia buys $5B in Intel

#232

Post by jonas21 »

prewett wrote: post #212
jonas21 wrote: post #194

NVDA stock is up 3.5% so far today, which is ~$150B, or slightly more than one Intel. $5B is pocket change in comparison.

Except that Nvidia, Inc. doesn't own any of that NVDA stock, other people do, and they cannot access that money. Nvidia, Inc. owns net profit, which is orders of magnitude less than market cap. Last year's net profit was just under $73 billion. ($5 billion is still very affordable, too be sure).

The board could issue more stock, which would dilute existing shareholders by about 0.1% and (in theory) cause the stock price to drop by 0.1%.

But yeah, it's probably easier to just use cash on hand.

Re: Nvidia buys $5B in Intel

#233

Post by raincole »

tw04 wrote: post #191
justincormack wrote: post #184

Earlier quoted context omitted.

Consumer gpus are totally different products from the high end gpus now. Intel has failed on the gpu market and has effectively zero market share, so it is not actually clear there is an antitrust issue in that market. It would be nice if there was more competition but there are other players like AMD and a long tail of smaller ones

>Consumer gpus are totally different products from the high end gpus now. Intel has failed on the gpu market and has effectively zero market share, so it is not actually clear there is an antitrust issue in that market. It would be nice if there was more competition but there are other players like AMD and a long tail of smaller ones I'm sorry that's just not correct. Intel is literally just getting started in the GP…

"Intel getting started in GPU market" is like a chain smoker quitting smoking. It's so easy that they have done it 20 times!

Re: Nvidia buys $5B in Intel

#234

Post by sekai »

prewett wrote: post #212
jonas21 wrote: post #194

NVDA stock is up 3.5% so far today, which is ~$150B, or slightly more than one Intel. $5B is pocket change in comparison.

Except that Nvidia, Inc. doesn't own any of that NVDA stock, other people do, and they cannot access that money. Nvidia, Inc. owns net profit, which is orders of magnitude less than market cap. Last year's net profit was just under $73 billion. ($5 billion is still very affordable, too be sure).

> Except that Nvidia, Inc. doesn't own any of that NVDA stock, other people do, and they cannot access that money. Nvidia, Inc. owns net profit, which is orders of magnitude less than market cap. Last year's net profit was just under $73 billion. ($5 billion is still very affordable, too be sure).

Not all deals are made in cash, they can borrow money against their market share.

Re: Nvidia buys $5B in Intel

#235

Post by mandevil »

xbmcuser wrote: post #111
qzw wrote: post #31

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.

Nah I have feeling this is part of the result of the arm twisting to be allowed to sell to China.

This is a big ask for a shrinking market- with the pressure that the Chinese government is putting on their domestic companies to not buy H20's, I'm not sure how big this is going to be going forward. 5 billion (plus whatever it costs to build these products) is a lot for a market that is probably going to be closed soon.

Re: Nvidia buys $5B in Intel

#237

Post by elAhmo »

littlecranky67 wrote: post #167

This is a death blow to the Intel GPU+AI efforts and should not be allowed by the regulators. It is clear that Intel needs the downstream, low-cost GPU market segment to have a portfolio of AI chips based on chiplets, where most defective ones end up in the consumer grade GPUs based on manufacturing yield. NVidias interest is now for Intel not to enter either the GPU market, nor the AI market - which Intel was prepar…

Regulators? In this administration?

There is no such thing.

Re: Nvidia buys $5B in Intel

#238

Post by nxobject »

HarHarVeryFunny wrote: post #166

I'm guessing NVidia didn't do this by choice. Propping up Intel doesn't seem in their best interests, nor does it do their share holders any favors by diluting their rapid growth.

There's some case for self-interest – propping up another fab etc. – but I do wonder how much of it is USG. (The economic case for Intel integrating Nvidia silicon on-chip doesn't too much sense to me: there's no growth potential in commodity/consumer x86, and maybe they can shove their new integrated Nvidia in front of enterprise buyers, but I'd be a dubious re: ROI.)

Re: Nvidia buys $5B in Intel

#239

Post by numpad0 »

dontlaugh wrote: post #188
buildbot wrote: post #177

Earlier quoted context omitted.

? https://blogs.nvidia.com/blog/nintendo-switch-2-leveled-up-w...

The point stands, they're not willing to make something that could go in an ROG Ally, for example.

Sometimes HN users appear to have absolutely zero sense of scales. Lifetime sales numbers of those are like hours to days worth equivalent of Switch 2.

Re: Nvidia buys $5B in Intel

#240

Post by JustExAWS »

littlecranky67 wrote: post #167

This is a death blow to the Intel GPU+AI efforts and should not be allowed by the regulators. It is clear that Intel needs the downstream, low-cost GPU market segment to have a portfolio of AI chips based on chiplets, where most defective ones end up in the consumer grade GPUs based on manufacturing yield. NVidias interest is now for Intel not to enter either the GPU market, nor the AI market - which Intel was prepar…

Right now, for the US national interests, our biggest concern is that Intel continues to exist. Intel has been making crappy GPUs for 25 years. They weren’t going to start making great GPUs now.

Besides, who would actually use them if they don’t support CUDA?

Everyone designs better GPUs than Intel - even Apple’s ARM GPUs have been outpacing Intel for a decade even before the M series.

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