Nvidia's stake in Intel could have terrible consequences. First, it is in Nvidia's interest to kill Intel's Arc graphics, and that would be very bad because it is the only thing brighing GPU prices down for consumers. Second, the death of Intel graphics / Arc would be extremely bad for Linux, because Intel's approach to GPU drivers is the best for compatibility, wheras Nvidia is actively hostile to drivers on Linux. Third, Intel is the only company marketing consumer-grade graphics virtualization (SR-IOV), and the loss of that would make Nvidia's enterprise chips the only game in town, meaning the average consumer gets less performance, less flexibility, and less security on their computers.

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 preparing for with its GPU efforts in recent years.

The reason why Nvidia is buying now does not have to do anything with Arc or GPU competition. There are mainly two reasons.<p>1) This year, Intel, TSMC, and Samsung announced their latest factories' yields. Intel was the earliest, with 18A, while Samsung was the most recent. TSMC yieled above 60%, Intel below 60%, and Samsung around 50% (but Samsung's tech is basically a generation ahead and technically more precise), and Samsung could improve their yields the most due to the way set up the processes, where 70% is the target. Until last year, Samsung was in the second place, and with the idea that Intel caught up so fast and taking Samsung's position at least for this year, Nvidia bought Intel's stock since it's been getting cheaper since COVID.<p>2) It's just generally good to diversify into your competitors. Every company does this, especially when the price is cheap.

> For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.<p><a href="https://www.intc.com/news-events/press-releases/detail/1750/nvidia-and-intel-to-develop-ai-infrastructure-and-personal" rel="nofollow">https://www.intc.com/news-events/press-releases/detail/1750/...</a><p>What’s old is new again: back in 2017, Intel tried something similar with AMD (Kaby Lake-G). They paired a Kaby Lake CPU with a Vega GPU and HBM, but the product flopped: <a href="https://www.tomshardware.com/news/intel-discontinue-kaby-lake-g-amd-graphics,40577.html" rel="nofollow">https://www.tomshardware.com/news/intel-discontinue-kaby-lak...</a>

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.

Possibly more curious than the investment:<p>> Nvidia will also have Intel build custom x86 data center CPUs for its AI products for hyperscale and enterprise customers.<p>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.<p>In the event Intel ever do get US based fabrication semi competitive again (and the national security motivation for doing so is intense) nVidia will likely have to be a major customer, so this does make sense. I remain doubtful that Intel can pull it off, and it will have to come from someone else.

Nvidia sees the forest of the trees. The consequences of the US government buying steaks and Intel are that there will be Federal requirements for us companies using Intel. This is entirely about the foundry business. Nvidia is at risk when 100% of the production of its intellectual property occurs in Taiwan. They're more interested than anyone else in diversifying their foundry solutions. Intel has just been a terrible partner and totally disregards its customers. It's only because of the new strategic need for the US to have a foundry business that the government is saving until. NVIDIA is understandably supportive of this.

Intel is a strategically important company for the United States. This smells like a token investment to appease the US government. Not saying it’s bad, but very much looks like that.

I wonder what this means for Intel's Arc lineup. Would be a bit crazy to have privileged access to a competitor's roadmap through just owning a chunk of them. I also have to admit I really hope they dont cancel them. A triopoly is at least better than a duopoly (or realistically, a monopoly as AMD's competitiveness in gpus is pretty questionable)

Also, the US Govt bought $8.9B in stock last month I guess<p><a href="https://www.intc.com/news-events/press-releases/detail/1748/intel-and-trump-administration-reach-historic-agreement-to" rel="nofollow">https://www.intc.com/news-events/press-releases/detail/1748/...</a>

Could AMD argue that Intel's licence agreement for x86-64 is at risk since it requires that Intel (and AMD) may not change hands?

Intel should never have existed in the first place. We should have gone the RISC route in the 80s and 90s and it took 30 years for the world to realize that with ARM. It’s like we’re continuously resuscitating a zombie to terrorize us, instead of just letting it die.

Exactly what Buffett put into Bank of America in 2011. Not sure what that means, but. . . data points:<p><a href="https://markets.businessinsider.com/news/stocks/warren-buffett-invested-5-billion-bank-of-america-made-fortune-2020-10-1029690339" rel="nofollow">https://markets.businessinsider.com/news/stocks/warren-buffe...</a>

I 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.

I hope this isn't "Shut-up" money to end ARC gpu development. i have an A770, i am very happy with it.

This really wasn't a surprise, nVidia has seemed to be itching for a meaningful entry to the CPU market and when intel's CEO started undoing all and any future investment in the company it was clear everything was being setup for a sell off.<p>5 Billion is just a start but this is a gift for nVidia to eventually squire intel.

There's a lot of concern in the comments here about what this means for ARC. The size of this investment while large isn't enough to warrant jeopardizing ARC though. Intel has a responsibility to all shareholders, and diminishing ARC would be a bad move for overall shareholder value.<p>If Nvidia did try to exert any pressure to scrap ARC, that would be both a huge financial and geopolitical scandal. It's in the best interest of the US to not only support Intel's local manufacturing, but also it's GPU tech.

Called it. I knew Nvidia had nowhere left to go, with that insanely high valuation, other than to start buying competitors and adjacent companies. I don't think this is the end, either.

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.

> <i>It is unclear if Intel will issue new stock for Nvidia to purchase</i><p>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?

nVidia has also been licensing their GPU IP to MediaTek recently, who are working on a 2nd generation of a SoC that combines their ARM cores with nVidia GPUs now, catering to e.g. the automotive market.<p>Looks like using GPU IP to take over other brands' product lines is now officially an nVidia strategy.<p>I guess the obvious worry here is whether Intel will continue development of their own dGPUs, which have a lovely open driver stack.

I'm mixed on this, only because when they've done similar hybrid chips with AMD GPUs in the past the support has been poor and dropped off rather quickly.

About 16 years ago, Intel was considered an ugly monopoly that Nvidia didn't like [0]. It seems as if they have switched sides now.<p>[0]: <<a href="https://www.fudzilla.com/6882-nvidia-continues-comic-campaign-against-intel" rel="nofollow">https://www.fudzilla.com/6882-nvidia-continues-comic-campaig...</a>>

After the arm buyout fell through, I guess this is the next best thing. Plus a good deal for nvidia since Intel is pretty desperate at this point.

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

People have been talking about the concentration of risk in popular indices, now large caps are buying each other's stakes? Intel's stock is up 27% today..

A weird kind of full-circle moment: Intel used to laugh off Nvidia, then tried Kaby Lake-G with AMD (RIP), and now they're handing over CPU real estate to the company that wiped the floor with their own GPU efforts

So AMD got ATI, and now NVidia gets Intel.

It 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.

Almost 15% of Intel is now owned between the US govt. and NVidia.

Great news for all involved. It also would seem to validate Apple’s unified architecture for inference, and imply AMD is getting close…

No way this doesn't get blocked by antitrust. This will make them way too large and Intel is already trying to sell off (US govt bought $10B couple weeks ago)

I would say it's basically a bailout.<p>Probably government-mandated.

AMD is much stronger in unified memory architectures than Nvidia at this point. It kinda makes sense, with the AI push.<p>I wonder what this means for the ARC line of GPUs?

SemiAccruate reported that NVidia had been dipping its toes into manufacturing its products using Intel's fabs several months ago, I'd assume that that's related.

Apple is so glad to be out of the Intel hellhole,

smart move for nvidia, as amd is the true competitor, keeping using amd's cpu will just help to build up a competitor fast. also this helps intel to figure out its foundry business and it might work someday, which also benefits nvidia as now its only choice is tsmc.

Microsoft bailing out Apple vibes.<p>This time around Nvidia should HOLDL the stock

I'm very pessimistic about this. Goodbye to those nice, budget-friendly intel GPUs. nGreedia is going to continue selling 8 gig cards to consumers forever.

What's the significance of $5B of stock? Does that mean controlling share in Intel?

> Nvidia announced that it will buy $5 billion in Intel common stock at $23.28 per share, representing a roughly 5% ownership stake in Intel. (Intel stock is now up 33% in premarket trading.)<p>Why/how is INTC premarket up from $24.90 around 30% (to $32), when Nvidia is buying the stock at $23.28 ? Who is selling the stock?<p>I suppose the Intel board decided this? Why did they sell under the current market price? Didn't the Intel board have fiduciary duty to get as good a price from Nvidia as possible? If Nvidia buying stock moves it up so much, it seems like a bad deal to sell the stock for so little.

This has been an interesting 1.5 months for Intel on all fronts. I wonder how long this deal was in the making, since the timing is impeccable, looking at the current administration's involvement with Intel.

Looks like I sold my Intel too soon!

Are we getting a new iteration of sub-$200 mini PCs with an RTX chiplet?! That would be an <i>amazing</i> replacement for my N100!

Grandma smiling from heaven

This is the start of a state orchestrated AI war economy.

Man, talk about tables turning.

The enemy of my enemy is my friend

Nowadays I always wonder to what extent such deals are actually driven by market considerations and to what extent it's catering to the Trump administration. Token investments into this state enterprise named Intel seems to be a practical way to cater goodwill with the autocrats.

best news i've heard in days

How to buy out competition, kill their product offerings, and further your own market dominance without improving your own product.

Why there is no antitrust involved? this I think can affect AMD.

No idea what to think of this. I don't want Intel to die, but what will this do to their GPU business they're competing with NVIDIA on. And at worst this leads to even more consolidation

I won't trust Nvidia not doing it for nefarious purposes.

I know AMD used to be lacking but these days I guess they're probably the go-to on Linux because they share changes with the community<p>I don't like the idea of using Intel given their lack of disclosure for Spectre/Meltdown and some of their practices (towards AMD)

Wasn't Nvidia working on their own CPU design? Will they drop that?

Intel will soon say, "Et tu, Brute?"

Nana can stop spinning in her grave now, i think he just broke even....

Give up 0.1% of shares to get 5% of Intel.<p>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.

I'm taking this investment as a validation of the competitiveness of AMD's APUs & Apple's Silicon.

This is the first step that Nvidia takes to devour Intel.

INTC 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.

So that's probably it for the dedicated Intel GPUs. :/

NVIDIA is Jensen Huang life, and he is probably the best CEO in the USA. But he should be careful. Possible Shareholders lawsuits come with Discovery. NVIDIA sales to Coreweave for example, a company they have shares on is starting to look a lot like self-dealing.<p>Also, since this Intel deal makes no sense for NVIDIA, a good observer would notice that lately, he seems to spend more time on Air Force One than with NVIDIA teams. The leak of any evidence, showing this was an investment <i>ordered</i> by the White House, will make his company hostage of future demands from the current corrupt administration. The timing is already incredibly suspicions.<p>We will know for sure he become a hostage, if the next NVIDIA investment is on World Liberty Financial.<p>"Anatomy of Two Giant Deals: The U.A.E. Got Chips. The Trump Team Got Crypto Riches." - <a href="https://www.nytimes.com/2025/09/15/us/politics/trump-uae-chips-witkoff-world-liberty.html" rel="nofollow">https://www.nytimes.com/2025/09/15/us/politics/trump-uae-chi...</a>

Capitalism, all at the hands of just a bunch of people.

Precursor to full acquisition perhaps...also maybe Jensen play to Trump a bit in this.

Strategically this is good for the US and the West. Intel needs to survive because they have the only advanced fabs that aren't within reach of China.<p>But as a consumer, I hate this. Intel APUs have become quite good and are great for Linux users. I don't want Nvidia's bullshit infecting them. Jenson wants to be the Apple of chips and we'll all be worse off if Nvidia SoCs become ubiquitous.

5B is a fairly tiny stake (Intel's market cap is around 120B), other than the "we're now working together" signal, why is this news?

So USA now owns 10% of Intel<p>Did we make $500 Million off this?<p>Do we own 10% of Nvidia too? Or is that coming soon?<p>Hard to keep up with the now acceptable socialism

[deleted]

Any chance this move gives $INTC some legs long term?