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Nvidia Takes $5 Billion Stake In Intel Under September Agreement (reuters.com) 31

Posted by BeauHD from the done-deal dept.
Nvidia has completed its previously announced $5 billion investment in Intel, buying over 214 million shares at a fixed price after the deal received clearance from Federal Trade Commission. "The leading AI chip designer said in September it would pay $23.28 per share for Intel common stock, in a deal that is seen as a major financial lifeline for the chipmaker after years of missteps and capital intensive production capacity expansions drained its finances," reports Reuters.
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Nvidia Takes $5 Billion Stake In Intel Under September Agreement More

Nvidia Takes $5 Billion Stake In Intel Under September Agreement

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  • They are going for full suckage across the whole spectrum of tech. When this thing implodes nothing they have produced will be of any use to the consumer.

  • Would Intel be hurting their investor if they were to improve the iGPU?

    Based on the investment, you might have less reason to buy Intel now. Then again, best not to build any strong affiliation with any of the chip makers.

    • I was wondering the converse: whether that would allow Nvidia to make x86 CPUs and offer a complete suite like AMD does w/ Ryzen+Radeon.

    • There will eventually be NV GPUs integrated into Intel XPUs, but it won't be for another few generations. This plan was announced several months ago.

    • Intel is in grave danger of becoming irrelevant. They have never stuck with diversification, in that they have continually bought or developed and then sold or abandoned (usually sold, TBF) other product lines since they became the dominant CPU vendor. Now that they no longer have the world's best fabs, and AMD has surpassed them in every way but sales (sigh) they absolutely need to do something to be relevant again. Even if the AI bubble pops tomorrow (please?) Nvidia remains the dominant GPGPU vendor for

  • For context, intel offered 4.3 billion shares. You can do the math on the percentage stake Nvidia owns

    • It equates to nVidia owning just shy of 5% of Intel, but it does comfortably make them the top 5 biggest holders of Intel [marketscreener.com].

      • I smell something stinky here. Buying common shares.. at a fixed price.... No seeming 'quid pro quo'. It is like they are just propping up the share price and only benefits shareholders, like the US Government. I think it ties in with Trump meddling in NVDIA's sales to China. It doesn't appear to benefit any engineering nor technology at Intel. It doesn't on the face of it benefit nVidia.

  • Would this result in

    1. 1. Nvidia being allowed to make x86 CPUs, in addition to their GPUs, and offer an entire solution suite like AMD?
    2. 2. Would it just be Nvidia getting certain guaranteed capacity from Intel's fabs?

    Given how much Intel has fallen in terms of the x86 no longer being a cash cow - even Microsoft is trying to move their stuff to ARM - maybe Intel should re-purpose itself to become a pure foundry and nothing more, just like a TSMC or Global Foundries. They'll be a lot more useful and viable

    • 1) No.
      2) No.

      That's not how corporations work.

      3) It's Arm, not ARM.
      • 3. Acorn RISC Machines - ARM
        • Once upon a time, that was true. For the last decade, it has not been.
          Nobody can switch to ARM, unless they're referring to a pre-64-bit architecture, because it is called arm now, not ARM.

          Thank you for playing, though.

    • Intel's cross-licensing agreement with AMD is complicated. Your first question is not an easy one to answer. But in general neither AMD nor Intel can easily transfer control of their x86 license to a buyer.

      • At this point, we're just talking about x64s, so I guess it's AMD that Nvidia would need to talk to

    • maybe Intel should re-purpose itself to become a pure foundry and nothing more, just like a TSMC or Global Foundries. They'll be a lot more useful and viable that way

      First they have to get their new process working at acceptable yields, which they haven't managed to do. They could be a GloFo, but they couldn't be a TSMC. Maybe they will finally get their shit together and come up with a newer and better process, but equally, maybe someone else will come up with one. Intel has certainly not shown any signs that they will suddenly start kicking ass again.

      • maybe Intel should re-purpose itself to become a pure foundry and nothing more, just like a TSMC or Global Foundries. They'll be a lot more useful and viable that way

        First they have to get their new process working at acceptable yields, which they haven't managed to do. They could be a GloFo, but they couldn't be a TSMC. Maybe they will finally get their shit together and come up with a newer and better process, but equally, maybe someone else will come up with one. Intel has certainly not shown any signs that they will suddenly start kicking ass again.

        Intel won't start kicking ass again until they shake off their case of MBA-itis. Right now it appears they're mostly concerned with fucking around with management positions and propping up shareholder value in the short term while completely ignoring the very real engineering and development issues that have led them into this technological cul-de-sac that they have seemingly pulled into and refuse to leave. It's a cul-de-sac of mediocrity and sameness and they seem to be completely comfortable staying righ

  • Inflated Value (Score:3)

    by biggaijin ( 126513 ) on Monday December 29, 2025 @07:55PM (#65889159)

    The bubble continues to be fed by all these AI-related companies trading stock with each other and pretending it is a real acquisition of value. Hang on, folks. It's going to be bumpy.

  • Going for the "Too Big to Fail" I see. (Score:3)

    by ArghBlarg ( 79067 ) on Monday December 29, 2025 @07:56PM (#65889161) Homepage

    Oh for some actual anti-trust enforcement... sigh.

  • Buying at $23.28
    It's currently $36.68
    That's $2.8B in profit already.

    • Buying at $23.28 It's currently $36.68 That's $2.8B in profit already.

      That's a short-term gain based on speculation. Give it a few months, or possibly even weeks, and that'll taper right off if it doesn't start leading to some form of sellable product.

  • Is this going to end up ruining both companies, Intel buying NVIDIA with it's own money?
  • Will nVidia acquire intel?

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