Intel to build x86 CPUs with NVIDIA graphics, most likely spelling the end of ARC

Intel is in very dire straits, and as such, the company needs investments and partnerships more than anything. Today, NVIDIA and Intel announced just such a partnership, in which NVIDIA will invest $5 billion into the troubled chip giant, while the two companies will develop products that combine Intel’s x86 processors with NVIDIA’s GPUs.

For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market.

For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs.

↫ NVIDIA press release

My immediate reaction to this news was to worry about the future of Intel’s ARC graphics efforts. Just as the latest crop of their ARC GPUs have received a ton of good press and positive feedback, with some of their cards becoming the go-to suggestion for a budget-friendly but almost on-par alternative to offerings from NVIDIA and AMD, it would be a huge blow to user choice and competition if Intel were to abandon the effort.

I think this news pretty much spells the end for the ARC graphics effort. Making dedicated GPUs able to compete with AMD and NVIDIA must come at a pretty big financial cost for Intel, and I wouldn’t be surprised if they’ve been itching to find an excuse to can the whole project. With NVIDIA GPUs fulfilling the role of more powerful integrated GPUs, all Intel really needs is a skeleton crew developing the basic integrated GPUs for cheaper and non-gaming oriented devices, which would be a lot cheaper to maintain.

For just $5 billion dollars, NVIDIA most likely just eliminated a budding competitor in the GPU space. That’s cheap.

4 Comments

  1. 2025-09-18 1:03 pm
    • 2025-09-18 3:05 pm
      • 2025-09-18 3:12 pm
  2. 2025-09-18 1:49 pm

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