Pretty explicit in press conference that this partnership is about end-product, not process or foundry relationship. Mostly about NVLink, and NVIDIA products that will be sold with X86 and Intel products that will be sold with NVIDA chiplet onboard.
NVIDIA will invest $5 billion in Intel’s common stock!
- Thread starter Daniel Nenni
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AMD is a viable datacenter GPU competitor, actually a very good one, and that may have tilted the scales to Intel as the partner.
It’s definitely to shore up Intel in the x86 DC market to give Nvidia a stronger competitor against AMD’s “fully integrated” product line. Strategic defense/offense by Nvidia, and a huge upside win for Intel CPUs and Intel Foundry packaging business.
Now, where’s the Intel Foundry wafer customers…
siliconbruh999
Well-known member
Jensen said ARM has limitations that x86 doesn't have. Likely Software and bunch of HW stuff
I would imagine everyone is waiting to see if Panther Lake ramps before committing anything.
So does this mean that an Nvidia/Intel integrated product is far more likely to use Intel's Foveros?Q&A was the best part:
Jim Cramer from CNBC asked the first Q in the Q&A. Asking about the landscape of the partnership. He asked about Nvidia using Intel Foundry. Jensen deflected. Nvidia will be a large Intel customer and resell x86 chiplets.
The question about Nvidia using Intel Foundry was asked several times!
Jensen:
Trump had no involvement in this deal.
Sang the praises of TSMC when asked about Nvidia using Intel Foundry again.
$25-50B in annual partnership opportunity.
Still committed to Arm.
The investment in Intel is an incredible opportunity.
The investment is linked to the product announcement with a big ROI expected.
Intel has Foveros packaging that will connect Nvidia (TSMC) and Intel made chiplets (TSMC does not do that).
If Foveros proves effective here, Nvidia may use it in its own standalone products.
I thought it was a good call and the Q&A was entertaining. The pressure is definitely on for Intel Foundry customers. Just about every question asked that. I'm sure the next investor call will be the same. Lip-Bu Tan already said he would not announce a foundry customer until the ink was dry on the wafer agreement. I hope he holds to that, absolutely. I also hope the fabless customers get the message that Intel Foundry is gaining momentum and if they do not engage they had better have a good reason why.
There is certainly talk inside the semiconductor ecosystem about Intel Foundry customers. From what I have heard several customers are lining up but I do not want get on Lip-Bu's naughty list. I'm sure I will hear more next week at the TSMC event here in Silicon Valley.
The answer I would want to hear from Jensen, next time he is asked about using Intel Foundry would go something like this:
Let me tell you about wafer agreement negotiation, you do not want anything public until the ink is dry otherwise the price may go up.
Jensen said exactly that. Remember, TSMC will not package other foundry die, right now it is TSMC only due to the tight packaging constraints, which I understand completely. Intel packaging has always been open which is an advantage for Intel Foundry, for now.
It is interesting to see the resulting headlines:
Nvidia's $5B Shock Deal With Intel Sends Wall Street Reeling
Nvidia, Intel Deal Creates Risk for AMD, Arm
Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker (Reuters of course)
Nvidia is buying a $5 billion stake in Intel
Nvidia to Invest $5 Billion in Intel, Furthering Trump’s Turnaround Plan
US wins from Nvidia-Intel chip deal, says investment strategist
Nvidia, Intel to co-develop “multiple generations” of chips as part of $5 billion deal
Nvidia PR:
nvidianews.nvidia.com
Nvidia's $5B Shock Deal With Intel Sends Wall Street Reeling
Nvidia, Intel Deal Creates Risk for AMD, Arm
Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker (Reuters of course
)Nvidia is buying a $5 billion stake in Intel
Nvidia to Invest $5 Billion in Intel, Furthering Trump’s Turnaround Plan
US wins from Nvidia-Intel chip deal, says investment strategist
Nvidia, Intel to co-develop “multiple generations” of chips as part of $5 billion deal
Nvidia PR:
NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products
NVIDIA (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) today announced a collaboration to jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.
nvidianews.nvidia.com
hist78
Well-known member
Nvidia has its own server offerings and development projects. I don't think Nvidia is thinking its own server products are hopeless and decided to use Intel's.
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hist78
Well-known member
But it doesn't mean the jointly developed products will completely do away with TSMC, especially if they are based on TSMC's technologies and ecosystem. Looking ahead, in some cases Intel products may prefer to use TSMC in order to remain competitive when Intel Foundry lacks the capacity, capabilities, or capital expenditure to handle them. Glass substrate based advanced packaging may be one such case. As Lip-Bu Tan said, the best product wins.
hist78
Well-known member
It is interesting to see the resulting headlines:
Nvidia's $5B Shock Deal With Intel Sends Wall Street Reeling
Nvidia, Intel Deal Creates Risk for AMD, Arm
Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker (Reuters of course
Nvidia is buying a $5 billion stake in Intel
Nvidia to Invest $5 Billion in Intel, Furthering Trump’s Turnaround Plan
US wins from Nvidia-Intel chip deal, says investment strategist
Nvidia, Intel to co-develop “multiple generations” of chips as part of $5 billion deal
Nvidia PR:
NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products
NVIDIA (NASDAQ: NVDA) and Intel Corporation (NASDAQ: INTC) today announced a collaboration to jointly develop multiple generations of custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise and consumer markets.
And Nvidia saved the world and saved the humanity.
Amen
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hist78
Well-known member
This $5 billion doesn't change an important thing: Intel Foundry needs to execute and continuously deliver manufacturing processes that can compete and generate profits.
Absolutely. Intel’s execution had in previous years been horrific for this type of collaboration. Just look at the Aurora supercomputer project. But, LBT seems laser focused on this.
And, very importantly, Jensen said that 3 architecture teams have been working on this for coming up on a year so it’s obvious they did the initial “path finding / proof of concept” explorations in secret before committing. That Nvidia has now committed after that long engagement period is a huge vote of confidence in Intel’s ability to pull off this collaboration.
Former Intel CEO lays out radical plan to rescue the company — Suggests ousting Lip-Bu Tan and asks for $40 billion investment from Nvidia, Apple, and others
Craig Barrett was Intel's CEO for seven years.www.tomshardware.com
"He proposed that Intel’s eight largest customers, including Apple, Google, and Nvidia, should each contribute $5 billion in return for guaranteed domestic supply and pricing leverage against Asian competitors."
----
Jensen listen to Craig Barrett to invest 5 billions on Intel. Next will be other 7 largest customers?
It is not about "invest 5 billions". It is about "invest 5 billions at $23.28 per share". Craig Barrett contributed exactly nothing to the "at $23.28 per share" part, which already netted Nvidia quite a handsome $1 billion+ paper gain.
It is also about Intel and Nvidia jointly developing products that will expand their sales while blunt their common enemies, to which Craig Barrett again contributed exactly nothing.
Conclusion: you are merely bending reality to conform your circumscribed worldview. "Next will be other 7 largest customers" will not happen according to Craig Barrett's dictate.
How hard can you not see Craig Barrett is full of wishful corporate brain fart?!
ps. I just caught the [Craig Barrett] "Suggests ousting Lip-Bu Tan" part. Why is not Craig Barrett inserting himself as nothing but a farce?
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I'm just being sarcastic. Relax. I only take Craig Barrett's words as entertainment.
Not sure if location makes a big difference since TSMC probably chose Phoenix for the same reasons Intel chose it in the 90s - cheap and consistent power, cheap land and the supplier ecosystem that Intel themselves built. Intel packages its dies in Vietnam anyways, the cost of shipping is very lower relative to other factors.
Plus, Intel's headquarters in Santa Clara is actually just across Highway 101 from AMD's headquarters! They can actually wave to each other from across the freeway. Nvidia's is just a few minutes down San Tomas Expressway. They call it Silicon Valley for a reason.
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It could also be that Nvidia is apprehensive about the risk of Windows on Arm for client after seeing Qualcomm pump in billions with little to show for it. They might also be losing patience with MediaTek after having to do a humiliating re-spin. This is the cheapest, most direct way to enter the last remaining market without meaningful Nvidia penetration, while they try and get Microsoft to fix WOA.
Getting game developers to port their engines to Arm seems like a nightmare. The consumer market is a far cry from datacenter. If they don't fix the emulation in Windows, I don't see how N1/N1X succeeds if it's pitched as a gaming machine. Just ask Qualcomm how gaming under Prism emulation is going lol