TL;DR
Nvidia bought $5 billion of Intel stock at a locked-in price near $23.28 per share and closed the purchase on Dec. 26 after the FTC cleared the transaction Dec. 18. With Intel trading around $36.68, Nvidia's stake is now valued at about $7.58 billion, and the companies have agreed to jointly develop CPUs and GPU-integrated chips for datacenter and PC markets.
What happened
In a deal negotiated in September, Nvidia agreed to acquire 214 million Intel shares at roughly $23.28 per share. The U.S. Federal Trade Commission reviewed the transaction for antitrust concerns and gave its approval on Dec. 18. Nvidia completed the $5 billion purchase on Dec. 26, according to Intel regulatory filings. With Intel shares trading at about $36.68 at a recent close, the stake is now worth approximately $7.58 billion, representing an immediate unrealized gain for Nvidia. Beyond the equity purchase, the companies committed to jointly develop multiple generations of chips for datacenters and PCs. That collaboration includes connecting chips using Nvidia’s NVLink interconnect — cited at 1.8 TB/s bandwidth per GPU — and plans for Intel to build Nvidia-custom x86 CPUs and x86 systems-on-chips that integrate Nvidia RTX GPU chiplets. The arrangement echoes past regulatory friction around large semiconductor deals, including Nvidia’s abandoned Arm acquisition attempt in 2021.
Why it matters
- Nvidia realized a substantial, immediate paper gain on its $5B investment because the purchase price was locked well below current market levels.
- The partnership could reshape server and PC architectures by combining Nvidia’s GPU and interconnect tech with Intel’s x86 manufacturing and CPU expertise.
- Regulatory scrutiny around large chip partnerships remains a live issue given past challenges to major semiconductor transactions.
- Intel gains a role in building Nvidia-custom CPUs and integrating RTX GPU chiplets, potentially affecting OEM roadmaps and customer choices.
Key facts
- Nvidia agreed to buy 214 million Intel shares at about $23.28 per share.
- The $5 billion purchase closed on Dec. 26, per Intel regulatory filings.
- The U.S. FTC reviewed the transaction and approved it on Dec. 18.
- Intel shares closed around $36.68, valuing Nvidia’s holding at roughly $7.58 billion.
- The agreement covers joint development of multiple generations of datacenter and PC chips.
- Nvidia and Intel plan to link chips using NVLink, noted at 1.8 TB/s bandwidth per GPU (900 GB/s each direction).
- Intel will build Nvidia-custom x86 CPUs for Nvidia’s AI infrastructure platforms.
- Intel may produce x86 systems-on-chips that integrate Nvidia RTX GPU chiplets for PCs.
- The collaboration draws a parallel to Nvidia’s 2021 attempt to buy Arm, which faced FTC opposition and was abandoned.
What to watch next
- Whether any additional regulatory review or challenges arise after the FTC’s Dec. 18 approval (not confirmed in the source).
- Timelines and specifications for the jointly developed CPUs, SOCs and NVLink-enabled products — product launch details not confirmed in the source.
- How competitors and OEMs respond to potential x86+RTX integrated chips and Nvidia-custom CPUs in the market (not confirmed in the source).
Quick glossary
- NVLink: A high-bandwidth interconnect developed by Nvidia used to link GPUs and other processors for fast data transfer.
- x86 CPU: A family of instruction set architectures commonly used in personal computers and servers; many desktop and server processors are x86-based.
- System-on-Chip (SoC): An integrated circuit that combines multiple components like CPU, GPU, and memory controllers on a single chip.
- Datacenter: A facility or collection of servers and networking equipment used to host computing resources and services at scale.
Reader FAQ
How much did Nvidia pay for the Intel stake?
Nvidia paid about $5 billion for 214 million Intel shares at roughly $23.28 per share.
When did the purchase close and was it approved by regulators?
The purchase closed on Dec. 26, and the FTC cleared the deal on Dec. 18.
Is Nvidia buying Intel or taking control of the company?
Not confirmed in the source.
What joint developments will Nvidia and Intel pursue?
They will jointly work on multiple generations of datacenter and PC chips, link chips with NVLink, and build Nvidia-custom x86 CPUs and x86 SOCs that integrate RTX GPU chiplets.
SYSTEMS Nvidia spends $5B on Intel bailout, instantly gets $2.5B richer The deal negotiated in September locked Nvidia into a purchase price of $23 per share. Intel shares traded at…
Sources
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