A forty-five-year strategic partnership across PCs, cloud, AI, and the next generation of silicon.

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The relationship

Forty-five years.
One shared arc.

It started with a chip choice in 1981 and a vote of confidence in 1982. It became the IBM PC standard. It turned into a strategic alliance for the cloud era. Today it spans Gaudi 3, watsonx, Albany NanoTech, and the path to sub-1nm. This is how a customer-supplier choice became one of the longest collaborations in modern computing.

Years inside
Era 01
1981

1989
The PC era
Foundational design win

IBM chose Intel.
The world followed.

In 1981, IBM selected the Intel 8088 for the IBM Personal Computer — a decision that defined the architecture that would underpin the next four decades of personal and enterprise computing. The PC standard became the Wintel standard. The Wintel standard became the global enterprise standard. Every era of computing since has been built, in part, on the choice IBM made that year.

A year later, IBM put $250 million behind that choice — buying 6.25 million shares in Intel during a difficult moment for the chip industry. The financial press called it a vote of confidence. Securities analysts called it strategic. Intel called it independence-preserving. All three were right.

"Beyond doubt, I.B.M. is interested in Intel's technology."

Jay W. Cooper · F. Eberstadt & Company · The New York Times, December 1982
What changed between

IBM exited the equity stake
in 1987. It never exited
the relationship.

IBM sold its remaining Intel shares for $300 million — an $80 million after-tax profit on a five-year hold — and walked away as an investor. As a customer, partner, co-developer, and now joint go-to-market collaborator, it never left.

$250M
1982 stake
$300M
1987 sale
10%
of Intel sales by '87
45yrs
and counting
Era 02
1990

2010s
Server & cloud
From client to data center

From the desktop to the data center.

Through the 1990s and 2000s, the relationship deepened along the same trajectory the rest of the industry took: from the personal computer to the server, from the server to the data center, from the data center to the cloud. Intel Xeon became the workhorse. IBM became one of the largest enterprise customers and ecosystem partners for that workhorse — across IBM-branded systems, third-party deployments, and eventually the IBM Cloud itself.

By the early 2020s, IBM Cloud had standardized on Intel Xeon for bare metal — and a parallel R&D track had quietly emerged at IBM Research, where Intel and IBM were already co-investigating logic, packaging, and materials at the leading edge.

Era 03 · 2021 → Now · Strategic alliance

Three pillars.
One alliance.

The current chapter is the most multi-dimensional yet: AI infrastructure, frontier R&D, and consulting-led enterprise transformation — running concurrently, with IBM and Intel on every side of the table.

Pillar 01

Gaudi 3 on
IBM Cloud

IBM Cloud is the first cloud service provider to adopt Intel Gaudi 3 — bringing open AI economics to enterprise inferencing and fine-tuning, and extending into watsonx.ai.

Pillar 02

Albany NanoTech
& sub-1nm

Joint logic, packaging, and materials research at NY CREATES — including the new High-NA EUV Center and the path to sub-1nm with Lam Research.

Pillar 03

IBM Consulting
for Intel

Strategic engagements that turn Intel's enterprise functions — finance, supply, talent, ops — from cost centers into compounding growth engines.

Holding up · One alliance
From the partnership
"The new High NA EUV Center at Albany NanoTech will secure a strong pipeline for semiconductor innovation, keeping New York State at the center of semiconductor expertise, accelerating the growth of the global chip industry — and helping to meet manufacturing demand for new technologies such as generative AI."
Arvind Krishna
Chairman & CEO · IBM
What's next

From IA to AI.
The Age of Ingenuity.

Intel guided the world from the Industrial and Information Age to the Age of Ingenuity. At this inflection point of revolutionary change, the next chapter of the partnership turns inward — taking the same strategic depth that produced 45 years of joint product and research, and bringing it to bear on Intel's own enterprise.

IBM Consulting is positioned to help Intel transform enterprise operations from cost centers into growth enablers. Embracing Ingenuity to tap new technologies — watsonx.ai, hybrid cloud, automation — and deliver unprecedented impact for the company that shaped the silicon era.

NEXT CHAPTER 2026 → 2024 1987 1981
Decisions that mattered

The shortlist

Aug 1981

IBM PC ships with Intel 8088

A design choice that became a category. The IBM PC's success made Intel the de facto standard for personal computing, and seeded the architecture that runs most enterprise computing today.

Dec 1982

$250M equity stake

IBM purchases 6.25 million Intel shares — a vote of confidence during a difficult moment for the chip industry, with explicit language preserving Intel's independence.

2021

World's first 2nm node chip

IBM unveils the world's first 2nm node chip — a milestone in joint logic and device-architecture work that has been quietly compounding at IBM Research and the Albany NanoTech Complex for years.

May 2024

Gaudi 3 on IBM Cloud

IBM Cloud announced as the first cloud service provider to adopt Intel Gaudi 3 — extending into watsonx.ai for enterprise inferencing and fine-tuning at scale.

Dec 2023

$10B NY chip partnership

New York announces a $10 billion chip-ecosystem investment — anchored by IBM, Micron, Applied Materials, and Tokyo Electron — to scale advanced semiconductor manufacturing in the U.S.

Mar 2026

Sub-1nm logic with Lam

IBM and Lam Research extend their decade-long collaboration to advance sub-1nm logic scaling and High-NA EUV lithography — building on the 2nm milestone and pulling Intel-relevant R&D forward another generation.

The next 45 years start now.

IBM Consulting is ready to help Intel turn the next inflection point into compounding growth.

Talk to IBM Consulting