In a surprising twist, longtime rivals Nvidia and Intel are teaming up to co-develop new x86 products for both gaming PCs and data centers. As part of the deal, Nvidia will also invest $5 billion in Intel stock.
The two companies announced that the partnership will span multiple generations of x86 processors, targeting hyperscale, enterprise, and consumer markets. The chips will integrate through Nvidia’s NVLink interface to combine Intel’s CPU expertise with Nvidia’s AI acceleration technology.
Nvidia described the collaboration as being in its very early stages. No release schedule or technical details have been disclosed yet, though the companies emphasized that the effort forms part of a multi-year roadmap. Nvidia also stressed that the plans are designed to complement, not replace, its existing Arm-based Grace and Vera CPUs.
"Intel x86 RTX SOCs" for the PC market
One major initiative will be the development of "Intel x86 RTX SOCs" - system-on-chips that pair an Intel x86 CPU chiplet with an Nvidia RTX GPU chiplet inside a single package. Intel will manufacture and sell these processors itself.
The two chiplets will be linked through NVLink, which promises up to 14 times the bandwidth of PCIe with lower latency. The SOCs are aimed at thin-and-light gaming laptops and small-form-factor PCs, putting them in direct competition with AMD’s APUs. Nvidia will continue supplying its own GPU drivers, while Intel’s integrated Xe graphics will remain the standard for mass-market products.
Custom x86 datacenter CPUs for Nvidia
Beyond PCs, Intel will also design and build customized x86 CPUs for Nvidia’s datacenter customers. Nvidia will sell these processors under its own branding to enterprise clients and hyperscalers. While specific design tweaks have not been revealed, these chips will also use NVLink for faster CPU-GPU interconnects.
The move fits into Intel’s IDM 2.0 strategy, which encourages custom semiconductor development. Intel recently set up a dedicated unit for this purpose, and Nvidia has already been testing prototype chips on Intel’s advanced 18A node. It is not yet clear whether these new x86 processors will also be manufactured directly in Intel fabs.
Nvidia to buy $5 billion stake in Intel
A central part of the deal is Nvidia’s $5 billion equity investment in Intel. Nvidia will buy shares at $23.28 each, giving it roughly a 5 percent stake in the company. The purchase is subject to regulatory approval.
The investment comes on the heels of other major backers stepping in: the U.S. government committed $9 billion to Intel earlier this year, while Softbank purchased $2 billion worth of shares. These moves provide crucial support as Intel faces steep capital expenditures to compete with TSMC while operating under negative cash flow.
A joint press conference is scheduled for 7 p.m. tonight.
