Will Nvidia’s New Windows PC Move Spell Trouble For Intel?

Nvidia has been at the forefront of artificial intelligence development, particularly for GenAI, with its computing chips in the last few years.

In fact, the company has been a force to reckon with in the AI industry for over a decade, able to “perform complex AI tasks like image, facial and speech recognition, as well as generating text for chatbots like ChatGPT” according to a report.

Now, the company is making huge moves to further the industry with tie-ups (read more).

However, the focus on Nvidia today is not for its artificial intelligence exploits but rather in another direction that’s already causing reactions in the financial markets!

What’s it all about? Let’s explore:
 

What’s Nvidia’s New Announcement About?

 

• Reportedly, Nvidia has started designing CPUs (Central Processing Units) that can run Microsoft’s Windows operating system.

• This is being done with the help of technology from Arm Holdings, using Arm-based processors for Windows PCs.

• Advanced Micro Devices AKA AMD, another major player in chip manufacturing, will also be entering the same arena and make chips using Arm technology, the report finds.

• Furthermore, both Nvidia and AMD could sell PC chips as early as 2025.

• The two companies will join Qualcomm in the endeavor. Qualcomm has been making Arm-based chips for laptops since 2016 and the report states that the company will soon reveal details about a flagship chip that’s in development, designed by a team of ex-Apple engineers.

• Coming to the effects felt on the financial markets, Nvidia’s shares rose 3.84% and Arm Holding’s shares were up 4.89%, while Intel fell 3.06%, as per the report.

 

What’s Driving Nvidia’s Latest Move?

 

• Microsoft has been facing tough competition from Apple, which almost doubled its market share over a period of three years, as per the report.

• Microsoft also found that Apple’s Arm-based chips offered efficiency and included AI processing, something the company also wishes to achieve.

• Essentially, Microsoft is encouraging chip makers to build Arm-based processors for Windows PCs with AI features into the CPUs, to push its Copilot initiative. Additionally, the company is looking to reduce the reliance on Intel and shake up its dominance in the industry.

 

What Did Stakeholders Say About The Move?

 

• Nothing. #YouReadThatRight

• As per the report, “Nvidia spokesperson Ken Brown, AMD spokesperson Brandi Marina, Arm spokesperson Kristen Ray and Microsoft spokesperson Pete Wootton all declined to comment.”

• However, experts did weigh in regarding the stakeholders and Nvidia’s move. Jay Goldberg, chief executive of D2D Advisory, a finance and strategy consulting firm, said, “Microsoft learned from the 90s that they don’t want to be dependent on Intel again, they don’t want to be dependent on a single vendor ... If Arm really took off in PC (chips), they were never going to let Qualcomm be the sole supplier.”

• Naveen Rao, a neuroscientist and tech entrepreneur who worked at Intel and then a software start-up that Intel later acquired, found that Nvidia had set itself apart from rival chip makers as they created a larger community of AI programmers. Post evaluating chips from Nvidia and rival manufacturers, Rao said, “Everybody builds on Nvidia first … If you come out with a new piece of hardware, you’re racing to catch up.”

On the flip side, Intel has been making moves in the artificial intelligence sector too, as the company is including AI features in its chips and even showed a laptop running ChatGPT-like features directly on the device!

Do you think Intel could take a grand stand against its competitors with AI-capable chips? Or will Nvidia, AMD and Qualcomm’s disrupt Intel’s dominance in the PC sector?

Let us know in the comments below!