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Intel and Nvidia Announce Strategic Partnership
On Thursday, Intel (NASDAQ: INTC) and Nvidia (NASDAQ: NVDA) unveiled a collaboration to create central processing units (CPUs) for PCs and data centers that integrate Nvidia’s graphics processing units (GPUs). This partnership poses a significant challenge for Advanced Micro Devices (NASDAQ: AMD), which currently holds a 24% market share in the PC and server markets, a notable increase from 11% in 2016.
Integrated Technologies and Market Impact
The new CPUs will feature systems-on-a-chip (SoCs) that combine Intel’s CPU cores with Nvidia’s RTX GPU technology, aimed at enhancing gaming laptops and AI PC capabilities. In data centers, Intel’s custom CPUs will use Nvidia’s NVLink technology, improving performance significantly compared to standard interfaces. As a reference, Nvidia’s RTX 5090 offers 1,824 trillions of operations per second (TOPs), compared to AMD’s top offering of 126 TOPs, highlighting the potential performance gap between the two companies.
Future of AI PCs
The collaboration is designed to bolster AI computing power, targeting a market where PCs capable of handling AI workloads are still emerging. The integration of Nvidia’s GPUs with Intel CPUs could enhance local AI processing capabilities, setting the stage for a more competitive landscape against AMD in the AI PC sector.
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