It's a good deal for Nvidia, because custom x86 server CPUs have optimization potential for AI computing clusters, which matters now that Nvidia has competitors

It's a good deal for Nvidia, because custom x86 server CPUs have optimization potential for AI computing clusters, which matters now that Nvidia has competitors that they didn't just 2 years ago. I think that the next several years of Nvidia will be ones of fending off growing competition. They basically baked in a massive investment profit into the deal. When you factor in the stock jump since this announcement, Nvidia has already made billions.