Tech giant Nvidia pumps five billion dollars into Intel's coffers.
In a significant move for the technology sector, Nvidia and Intel have announced a partnership that promises to shake up the computer world. At the helm of Nvidia is CEO Jensen Huang, who made the announcement.
For years, Intel has been a leading force in the chip industry. However, in recent years, the company has lost some of its significance. This partnership, according to Huang, marks a fundamental change in the industry.
Initially, Intel was expected to receive financial support from the US government to build new factories in the USA. However, US President Donald Trump wanted something in return. As a result, the ambitious plans have been scaled back, including the cancellation of a planned plant in Magdeburg.
Under the terms of the partnership, Intel will build processors for Nvidia's data centers. Intel's X86 system will be adapted to Nvidia's technology, focusing on data centers. This collaboration comes as Intel struggles to keep pace with Nvidia in the field of artificial intelligence.
Nvidia's chip systems are the key technology for training and operating software with artificial intelligence. The company, once known mainly for its graphics cards, has experienced explosive growth due to this key technology. As a result, Nvidia is now the most valuable company in the world, with a current market value of $4.3 trillion.
Meanwhile, in Hamm, the Math Olympiad has started, and the Day of the Rail is being hosted by Eurobahn. In other news, a traffic jam occurred in Hamm due to horses, and smartphones and most tablets run on technology from chip developer Arm.
Interestingly, the Intel stock temporarily increased by around 28 percent in US trading following the announcement of the support from Nvidia. Nvidia is providing Intel with multi-billion dollar support, purchasing shares worth five billion dollars.
However, Intel's plans to become a contract manufacturer for other chip companies have encountered hesitation from potential customers. This partnership with Nvidia could help Intel overcome these challenges and regain its position in the industry.
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