Paul Otellini, former Intel CEO, initially proposed the idea, but the board was reluctant to adopt it, as revealed by a recent report. In 2005, AMD and ATI were distinct entities, whereas Nvidia focused on developing high-performance gaming graphics processing units (GPUs) rather than becoming a prominent artificial intelligence data center player. If Intel acquires a prominent GPU manufacturer, it could significantly alter the PC landscape as we currently know it – potentially incorporating Nvidia GeForce GPUs into their CPU designs.
If this event had transpired, we would not be merely examining a drastically distinct landscape in the arena of gaming’s finest CPUs and graphics cards. The mooted value for Nvidia was reportedly a staggering $20 billion, roughly four times the $5.4 billion AMD paid for ATI in a combination of cash and stock, while Intel’s valuation reached an impressive $150 billion.
According to a report by The New York Times, two anonymous individuals familiar with the Intel boardroom discussion claim that Otellini proposed the idea, with some executives allegedly supporting it.
Despite this, the Intel board allegedly persisted, since the acquisition would have been their most expensive ever, by a significant margin, and “Intel has a poor reputation for absorbing companies.” Otellini, who passed away in 2017, reportedly then backed down, and that was the end of the idea; however, one source continues to explain the aftermath as “a fateful moment,” when viewed with the wisdom of hindsight.
Following the failure of Atom-based graphics, Intel substituted its strategy with an ambitious plan to develop an in-house graphics processing unit (GPU) project called Larrabee, which relied on a cluster of Pentium processor cores operating in harmony. However, this endeavour ultimately met its demise. Intel further invested in real-time ray tracing on x86 cores, but ultimately couldn’t secure the necessary funding to bring it to life on a standard desktop setup. Over the past few years, Intel has made a concerted effort to develop high-performance, full-featured graphics processing units (GPUs), exemplified by the release of the Intel Arc A770. However, despite this initiative, the company’s market share remains significantly smaller compared to industry leader Nvidia.
It’s impossible to speculate on how this agreement would have unfolded without knowing the context and intricacies involved. We can reimagine an alternate scenario where Intel took the reins, potentially diverting the course of GPU development and leading to integrated GPUs within CPUs from the outset. The $20 billion deal’s magnitude was unprecedented for Intel, whose size necessitated a considerable timeframe before reaping the rewards from its partnership with Nvidia. Despite its acquisition of ATI and offering market-leading integrated graphics through APUs, AMD faced significant financial challenges over a period of several years.
Think about it, although. Yes, many modern gaming consoles now incorporate a combination of Intel CPUs and Nvidia GPUs. For instance, the PlayStation 5 uses an AMD Zen 2 CPU paired with an NVIDIA Ampere GPU, while the Xbox Series X/S employs a custom AMD Zen 2 CPU coupled with an NVIDIA Ampere GPU as well. If Intel had acquired Nvidia instead of purchasing Mellanox, the trajectory of AI advancements might have been significantly altered. What if a reported boardroom conversation had taken a distinct turn, potentially altering the gaming PC and broader tech landscape? It’s possible that Intel would not be facing its current financial struggles.
To stay updated on Intel and Nvidia’s current endeavors, explore our Intel Arrow Lake coverage, which delves into the specifications of their latest desktop CPUs, and our comprehensive Nvidia RTX 5000 roundup, where we gather all the latest rumors surrounding the next generation of graphics cards.
