Nvidia Invests $5B in Intel to Build Next-Gen Chips, Boost AI Push
On Thursday, tech giant Nvidia announced a $5 billion investment in Intel, marking the beginning of a collaboration to co-develop custom data center and personal computing chips. Nvidia stated, “The investment will be made through the purchase of Intel’s common stock at $23.28 per share.” Nvidia’s founder and chief executive officer Jensen Huang stated “AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software.”
“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.” The move follows nearly two weeks after United States President Donald Trump signed a deal with Intel to acquire a 10 per cent stake, aiming to revive the struggling chipmaker and bolster domestic semiconductor production. After the investment, Trump remarked, “I will make deals like that for our Country all day long.” Nvidia and Intel have reached a new agreement to integrate Nvidia’s artificial intelligence and accelerated computing technologies with Intel’s x86 CPU architecture. Intel will design custom x86 CPUs for Nvidia, which will be integrated into Nvidia’s AI infrastructure platforms for data centres.
Intel will produce system-on-chips that combine its CPUs with Nvidia RTX GPU chiplets, targeting high-performance consumer systems in personal computing. Intel CEO Lip-Bu Tan stated that the partnership enhances the company’s enduring role in modern 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,” he stated. “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.”
A market analyst stated, “The move shows Nvidia’s attempt to broaden its investments in the US while also seeking favour with the government.” “It doesn’t change the bigger problem, which Nvidia is facing with China, but it keeps it in favour with the US government,” the analyst stated.
