Tech leaders announce multi-generational partnership with local ties to Folsom as Intel navigates challenges and reshapes its legacy
Two of the world’s largest chipmakers, one of which has a major presence in Folsom, are joining forces in a historic deal that underscores the global race to dominate artificial intelligence and advanced computing. On Thursday, NVIDIA and Intel announced a sweeping collaboration to co-develop multiple generations of custom processors and personal computing products spanning hyperscale, enterprise, and consumer markets.
The announcement was made during a joint press conference hosted by the two companies, where executives called the partnership a transformative step for the future of computing. The agreement also comes amid Intel’s ongoing financial challenges in the industry, which have led to hundreds of layoffs over the last two years.
The collaboration will focus heavily on the seamless integration of both companies’ technologies. Intel’s long-standing x86 processor architecture will be paired with NVIDIA’s industry-leading AI and accelerated computing platforms, connected through NVIDIA’s high-speed NVLink. Company leaders stressed that the goal is to create products that “seamlessly connect” the two architectures, allowing them to function as one unified platform. By merging these strengths, Intel and NVIDIA say they will deliver cutting-edge solutions for customers who are demanding faster, more efficient, and more flexible computing systems.
For the enterprise market, Intel will design and manufacture NVIDIA-custom x86 CPUs that will be integrated into NVIDIA’s AI infrastructure platforms. These processors will then be offered to the market as commercial products, not limited to internal use, giving customers new options for powering massive workloads such as machine learning, cloud-based analytics, and enterprise-scale applications.
On the consumer side, Intel will build x86 system-on-chips that integrate NVIDIA RTX GPU chiplets. Unlike traditional arrangements where CPU and GPU technology are sourced separately, these new SOCs will provide a single, integrated product designed to maximize performance. Intel will also offer these SOCs directly to the market, enabling PC manufacturers to design a new generation of laptops and desktops that combine world-class CPU and GPU capabilities in one solution. According to the companies, this shift will particularly benefit gamers, content creators, and mainstream users who want advanced performance in thinner, more powerful devices.
A Historic Alignment
“AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture,” said NVIDIA founder and CEO Jensen Huang. “This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
“Intel’s x86 architecture has been foundational to modern computing for decades — and we are innovating across our portfolio to enable the workloads of the future,” said Lip-Bu Tan, CEO of Intel. “Intel’s leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry. We appreciate the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business.”
As part of the agreement, NVIDIA will invest $5 billion in Intel common stock, purchasing shares at $23.28 apiece. The investment is subject to customary closing conditions and required regulatory approvals. Analysts note that the infusion represents a major vote of confidence in Intel’s future, particularly as the company seeks to reassert itself after years of intense pressure from competitors and ongoing restructuring.
The press conference itself was notable for its optics. Huang and Tan appeared together to present the deal as more than just a business transaction, describing it as a historic alignment between two companies that have often competed fiercely in the past. Their joint remarks positioned the partnership as a moment of industry reinvention, intended to build trust with customers and signal to competitors that NVIDIA and Intel are willing to collaborate to accelerate innovation.
Industry observers say the implications are far-reaching. By committing to multiple generations of joint products, the companies are not only signaling a long-term roadmap but also directly challenging rivals across the chip sector. AMD has been gaining traction in both CPUs and GPUs, ARM-based architectures are increasingly used in consumer devices and data centers, and Qualcomm has announced ambitious efforts in AI-enabled personal computing. By integrating CPUs and GPUs more tightly than ever before, Intel and NVIDIA are making a bid to reclaim dominance in markets where fragmentation and alternative architectures have threatened the x86 ecosystem.
The deal also speaks to broader geopolitical and economic pressures. As policymakers push for stronger U.S.-based supply chains, NVIDIA’s decision to partner with Intel helps diversify its manufacturing beyond overseas fabs while giving Intel a marquee customer to showcase its foundry and advanced packaging capabilities. Analysts suggest this move could stabilize Intel’s position while providing NVIDIA with more secure, domestic supply options at a time when demand for AI chips has reached unprecedented levels.
While the companies have not disclosed precise rollout timelines, they emphasized that the integration of NVIDIA’s GPU technology directly into Intel’s x86 SOCs could begin appearing in consumer products within the next cycles, with data center chips expected to follow closely as customers adopt the new platforms. By describing the collaboration as multi-generational, executives made clear that this is not a one-off partnership but a long-term strategy designed to reshape computing for years to come.
Intel’s Struggles and Its Folsom Legacy
As previously reported in Folsom Times, Intel has been navigating a number of serious financial, structural, and local challenges. The U.S. government recently agreed to purchase about 433.3 million newly issued shares of Intel common stock—roughly a 9.9% stake—at $20.47 per share, totaling about $8.9 billion. Part of that funding derives from CHIPS and Secure Enclave programs, significantly increasing federal investment in Intel.
At Intel’s Folsom campus alone, more than 500 additional job cuts were confirmed in July, bringing the local total to over 900 layoffs in the past year. These reductions are part of Intel’s wider global restructuring plan to cut approximately 15% of its workforce—about 15,000 jobs in total. The company has also disclosed plans to sell its longtime Prairie City Road campus and lease back only the space it needs, signaling both cost-cutting and downsizing of physical infrastructure in Folsom.
Intel’s struggles are not confined to workforce changes. The company reported a $16.6 billion loss in late 2024 and pledged to cut $10 billion in costs by the end of 2025. Slumping demand for personal computers, servers, and consumer devices has taken a toll on revenue, while competitors such as AMD and NVIDIA have captured significant market share during the AI boom. Manufacturing setbacks have further weakened Intel’s standing, as delays put it behind Taiwan Semiconductor Manufacturing Company (TSMC) and eroded customer trust.
These setbacks have hit especially hard in Folsom, where Intel has been a fixture since 1984. That year, the company opened its sprawling 150-acre research and development campus at the intersection of Iron Point Boulevard and Prairie City Road, a site that transformed Folsom from a rural community into a growing high-tech hub. At the time, Intel was releasing its 286 microprocessor chip, and the rise of personal computers drove demand for skilled workers. The company’s arrival fueled explosive population growth in Folsom, which more than doubled between 1980 and 1990.
By the 1990s, Intel’s Folsom campus had expanded with multiple buildings, growing to 2,500 employees by 1993 and peaking at more than 4,100 workers during the dot-com boom of the late 1990s. Its acquisition of Sacramento-based Level One Communications in 1999 added another 1,000 employees. The 2000s brought new facilities like FM7, and the campus eventually grew to seven buildings totaling more than 1.5 million square feet.
Intel’s local presence was more than economic. The company became deeply involved in community life, with employees contributing more than 150,000 volunteer hours and over $1 million to local nonprofits in 2019 alone. Folsom’s Intel teams specialized in graphics, chipsets, and solid-state drives, helping to anchor the city as part of the Sacramento region’s technology corridor.
Employment in Folsom once reached as high as 10,000, but by 2025 has fallen to below 5,000 amid layoffs and restructuring. Intel is now moving forward with its plan to sell the campus outright, leasing back only the space it requires. Despite these cutbacks, Intel’s legacy in Folsom remains significant. The company helped define the city’s identity as a hub of innovation, and generations of former Intel engineers have gone on to launch spinoff companies and strengthen the region’s semiconductor ecosystem.
Thursday’s announcement with NVIDIA, while global in scale, represents another chapter in that local story. It underscores that even as Intel downsizes and adjusts, its Folsom operations remain connected to some of the most consequential developments in the future of technology.
Intel Folsom Milestones Folsom
1984 – Arrival and growth
Intel opens its 150-acre research and development campus at Iron Point Boulevard and Prairie City Road, transforming Folsom from a rural community into a high-tech hub. The city’s population more than doubles between 1980 and 1990.1990s – Expansion
The campus grows with new buildings and employment surpasses 2,500 by 1993. By 1998, more than 4,100 people work at the site. Intel acquires Sacramento-based Level One Communications in 1999, adding 1,000 local jobs.2000s – Bust and build-out
The tech bubble bursts in 2000, but Intel continues expanding. The Folsom campus grows to seven buildings totaling more than 1.5 million square feet.2010s – Community impact
Intel’s “Intel Involved” volunteer program contributes more than 150,000 hours and over $1 million to local nonprofits in 2019 alone. The Folsom site specializes in graphics, chipsets, and solid-state drives.2020s – Downsizing and sale
Employment, once as high as 10,000, falls below 5,000 amid layoffs in 2024 and 2025. Intel announces plans to sell the Prairie City Road campus and lease back a smaller portion of the space it needs.Summer of 2025 – Federal government stake and NVIDIA partnership
The U.S. government purchases a 9.9% stake in Intel, investing about $8.9 billion through CHIPS and Secure Enclave programs. At the same time, NVIDIA invests $5 billion in Intel stock as the two companies launch a multi-generational collaboration to integrate CPUs and GPUs, advancing AI infrastructure and personal computing.
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