Also, the US Govt bought $8.9B in stock last month I guess
https://www.intc.com/news-events/press-releases/detail/1748/...
Nvidia buys $5B in Intel
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Re: Nvidia buys $5B in Intel
#52What's the significance of $5B of stock? Does that mean controlling share in Intel?
It’s a corporate engagement ring.
Re: Nvidia buys $5B in Intel
#53Possibly 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…
If you were a big enough customer you could get a SKU for you, too. E.g. hyperscalers have Xeons which are not available for any other customers for any price.
Re: Nvidia buys $5B in Intel
#54Possibly 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…
> Actually listening to people that want to buy your stuff, whatever next?
This is very likely the new culture that LBT is bringing in. This can only be good.
Re: Nvidia buys $5B in Intel
#55This is the first step that Nvidia takes to devour Intel.
Re: Nvidia buys $5B in Intel
#56Give up 0.1% of shares to get 5% of Intel.
Seems to be an easy bet, if for no other reason than to make the US Government (Trump) happy. Trump gets to tout his +30% return on investment.
Re: Nvidia buys $5B in Intel
#57INTC is strategically important company. They won't be allowed to fail. Of course, that doesn't mean the stock is a good investment. During the GFC, all the equity holders were wiped out all the bond holders got all their money back. Figure that one out.
That's quite literally why bonds are bonds and equity is equity...
Re: Nvidia buys $5B in Intel
#58> 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 perc…
> It’s so gross that companies can just dilute and create stock out of thin air like this.
Intel is up 30% pre market on this news so I think the existing shareholders will be fine.
Re: Nvidia buys $5B in Intel
#59I 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.
You can't be serious. Intel was well on its way to be a considerable threat to NVIDIA with their Arc line of GPUs, which are getting better and cheaper with each generation. Perhaps not in the enterprise and AI markets yet, but certainly on the consumer side. This news muddies this approach, and I see it as a misstep for both Intel and for consumers. Intel is only helping NVIDIA, which puts them further away from uns…
I'm sure Larrabee will be superb any year now. The Xeon phi will rise again. For supporting evidence, the success of Aurora. Weren't the loss-leading arc GPUs cancelled as well? Maybe that only one generation of them, it does look like some are on the market now.
I think this partnership will damage nvidia. It might damage intel, but given they're circling the drain already, it's hard to make matters worse.
It's probably bad for consumers in every dimension.
Or to take the opposite, if nvidia rolled over intel and fired essentially everyone in the management chain and started trying to run the fabs themselves, good chance they'd turn the ship around and become even more powerful than they already are.
Re: Nvidia buys $5B in Intel
#60It feels like the end is in sight for dedicated graphics chips in consumer devices. Phones, consoles, and now Apple silicon are proving that SoC designs with unified memory and focused thermals are a winning strategy for efficiency and speed. Nvidia may be happy enough to move the graphics strategy onto an SoC and keep discrete boards just for AI.