Nvidia has agreed to invest five billion dollars in Intel, marking a significant collaboration between two of Silicon Valley’s most prominent rivals as they seek to reshape the landscape of artificial intelligence and personal computing.
The deal, announced on Thursday, will see the companies jointly develop custom chips for data centres and personal computers, combining Nvidia’s expertise in graphics processing units with Intel’s established central processing unit technology.
The investment comes just a month after the United States government took a ten per cent stake in Intel, valued at eight point nine billion dollars, as part of efforts to bolster domestic chip manufacturing. Japan’s SoftBank has also committed two billion dollars for a two per cent stake in Intel, reflecting growing international interest in the company’s future.
Under the terms of the agreement, Nvidia will purchase Intel common stock at twenty-three dollars and twenty-eight cents per share, subject to regulatory approval. The companies will focus on integrating Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the x86 ecosystem, aiming to deliver advanced solutions for both enterprise and consumer markets.
Jensen Huang, Nvidia’s founder and chief executive officer, described the partnership as “a fusion of two world-class platforms,” adding, “Together, we will expand our ecosystems and lay the foundation for the next era of computing”. Lip-Bu Tan, Intel’s chief executive officer, expressed optimism about the collaboration, stating, “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”.
The announcement triggered a sharp rise in Intel’s share price, which surged by more than twenty-five per cent in early trading. Nvidia’s shares also saw gains, reflecting investor confidence in the potential of the partnership.
The collaboration is expected to accelerate innovation in AI infrastructure and personal computing, as both companies seek to address the growing demand for advanced chips in a rapidly evolving technological landscape.
