"Together, the investments represent far more than the cash value: they bolster Intel's ability to compete in markets it is struggling in and delineate where the company's potential futures lie. For example, the Trump administration's investment requires Intel to retain at least 51 percent of its foundry business. AMD needed no such commitment when it spun off GlobalFoundries in 2009, meaning it significantly reduced its overhead and became a light-footed company."
"Nevertheless, the road travelled by Intel is distinct. We've been told repeatedly just how close the link between Intel the chip designer and Intel the foundry is (very, by all accounts). This means Intel needs to cut its losses elsewhere, leading to the Nvidia deal we saw last week. Rather than trying to compete with the AI giant, Intel is joining it."
Nvidia invested heavily to become a major Intel shareholder and will co-engineer PCs and data center products with Intel. Intel sold 17% for $5 billion and previously sold 10% to the U.S. government for $8.9 billion, creating funding and strategic constraints including a requirement to retain at least 51% of its foundry business. The partnership lets Intel shift from head-to-head competition with Nvidia to collaboration, integrating x86 CPU advantages with Nvidia's CUDA-based AI capabilities. AMD's past divestment of GlobalFoundries illustrates a different path that reduced overhead. Major AI customers seek diversification even as Nvidia dominates AI infrastructure.
Read at Techzine Global
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