Nvidia and Intel’s $5B Deal Targets AMD’s Market

Nvidia and Intel have announced a massive $5 billion deal, and the message is clear: they’re teaming up to challenge AMD’s dominance in the integrated CPU and GPU market.

During a joint webcast, Nvidia CEO Jensen Huang and Intel CEO Lip-Bu Tan emphasized that the move isn’t about politics, US manufacturing, or abandoning Nvidia’s Arm CPU roadmap. Instead, it’s about targeting the one company that competes directly with both of them: AMD.

???? AMD in the Crosshairs

AMD has long held a unique advantage by combining CPUs and GPUs into powerful, efficient APUs. This approach has fueled the PlayStation and Xbox consoles, handheld PCs like the Steam Deck, and the latest Ryzen AI Max (Strix Halo) chips with up to 128GB of shared memory. AMD’s rise has made it a strong player in laptops, handhelds, and servers.

⚡ Nvidia + Intel’s Counterattack

Huang confirmed that Nvidia and Intel are working on a new class of system-on-chip (SoC) devices that fuse Intel’s CPUs with Nvidia’s RTX GPUs via NVLink. The goal is to create integrated graphics laptops and handhelds that can outperform AMD’s offerings while targeting the 150 million+ notebook market, far beyond the premium segment Nvidia already serves with discrete GPUs.

In addition, Nvidia revealed plans to become a major customer for Intel’s CPUs in its data centers, directly countering AMD’s growing 40% server processor market share.

???? What’s Next?

While both companies were vague about production details, Nvidia suggested Intel’s Foveros 3D stacking technology could play a role. However, TSMC — Nvidia’s long-time manufacturing partner — may still fabricate many of the chips. Neither CEO confirmed whether this collaboration guarantees more US chip manufacturing, despite political pressure.

???? Final Takeaway

The Nvidia–Intel partnership isn’t just about short-term survival for Intel. It’s a strategic play to undercut AMD in its strongest markets — laptops, handheld gaming, and servers. With integrated AI laptops and gaming devices on the horizon, the battle among the chip giants is about to get even more intense.

Frequently Asked Questions (FAQ)

Q1. Why did Nvidia and Intel sign a $5 billion deal?
Nvidia and Intel announced the deal to directly compete with AMD, focusing on integrated CPU+GPU laptops, handheld devices, and server CPUs.

Q2. Does this mean Nvidia is moving away from Arm CPUs?
No. Nvidia CEO Jensen Huang confirmed the company remains committed to its Arm roadmap while exploring Intel’s x86 CPUs for new markets.

Q3. How does this deal impact AMD?
The partnership targets AMD’s strength in combined CPU and GPU chips. AMD currently powers popular consoles, handhelds, and servers, but Intel and Nvidia want to break into that market.

Q4. Will these new Intel–Nvidia chips be made in the US?
The CEOs did not confirm. While Intel has US fabs, TSMC may still produce many chips for Nvidia, and manufacturing locations are yet undecided.

Q5. What does this mean for consumers?
If successful, the deal could bring more powerful and affordable AI laptops, gaming handhelds, and possibly new consoles, giving consumers more choices.