NN ONLINE:
Nvidia, the world’s leading chipmaker, announced Thursday that it will invest $5 billion in Intel and collaborate with the struggling semiconductor giant on products for artificial intelligence (AI) and personal computers.
Under the agreement, Nvidia will buy Intel common stock at $23.28 per share, pending regulatory approval. The two companies will work together on custom data center chips forming the backbone of AI infrastructure and on PC chips integrating Nvidia technology.
“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,” Nvidia CEO Jensen Huang said. “Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Intel will produce custom chips for Nvidia’s AI platforms, while for PCs, it will build chips that incorporate Nvidia technology. The partnership aims to “seamlessly connect” both companies’ architectures.
The deal provides a much-needed boost for Intel, once a Silicon Valley pioneer that dominated the personal computer era but fell behind after missing the mobile computing revolution triggered by the iPhone in 2007. Intel has struggled amid the AI boom that has propelled Nvidia to the world’s most valuable company, reporting nearly $19 billion in losses last year and $3.7 billion in the first half of 2025. The company also plans to cut a quarter of its workforce by year-end.
Meanwhile, Nvidia has surged as demand for its specialized graphics processing units (GPUs) grows, powering advanced AI systems.
Following the announcement, Intel shares rose 30% in premarket trading, while Nvidia added 3%.
