Nvidia just took a $5bn stake in Intel, equating to roughly 4.9% ownership of the company. The two companies have already announced plans to produce components for the consumer and data centre markets, specifically x86 CPUs complete with RTX GPU chiplets.
This partnership should prove lucrative for both parties. Intel benefits from a much-needed cash injection and access to the most-sought-after graphics technologies in the world. However, it’s Nvidia that perhaps has the most to celebrate, proverbially rubbing its hands with glee after finally finding an in-road to x86 manufacturing.
As a reminder, AMD and Intel are the only companies with a licence to produce processors using the x86 architecture. This gives the former the unique advantage of being able to pair in-house CPUs and GPUs. Nvidia’s had to settle for Arm in the meantime but needn’t any longer thanks to this deal.
Moving forward, Intel will develop custom x86 CPUs for Nvidia that will then feature in AI infrastructure. Furthermore, consumers can expect SoCs with RTX GPU chiplets to hit the market in the not-too-distant future.
Make no mistake, this deal could prove seismic to the face of the consumer and data centre market. However, amidst all this excitement, I wonder whether this deal effectively means the end for Arc?
Intel proved surprisingly scrappy with its Xe2 GPU architecture, powering Arc B580 and possibly Arc B770 later this year. The company’s already put plenty of work into the development of Xe3, the fruits of which will emerge via Panther Lake. The near-term future of Arc is certain, but I’m less convinced beyond that.
Given Intel CEO Lip-Bu Tan’s clear desire to improve the profitability of the company above all, why would the company continue to pump cash into a troubled project like Arc? That question becomes all the more foreboding now RTX GPU chiplets are available for Core Ultra chips.
Personally, I hope this isn’t the end of Intel’s graphics arm. Both Lunar Lake, in laptops and handhelds, as well as Arc B580 are impressive to the point that I’d like to see successors materialise. There’s been no word from Team Blue on the matter yet, but it’ll only be a matter of time before we see which way the pendulum’s swung.
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