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Tech giant Nvidia is set to invest $5 billion in Intel, cementing a new alliance with the chipmaker.
What’s brewing: Intel and Nvidia are collaborating to jointly develop multiple generations of custom data center and PC products, aimed at accelerating computing applications and workloads across hyperscale, enterprise, and consumer markets.
As part of this deal, Nvidia will become one of Intel’s largest shareholders, likely owning 4% or more of the company once new shares are issued to complete the agreement. Nvidia’s involvement represents a significant opportunity for Intel, offering a fresh boost and opening new avenues after years of turnaround efforts at the renowned US manufacturer struggling to deliver the desired results.
Nvidia is buying its stake at $23.28 per share. This landmark collaboration brings together Nvidia’s AI and high-speed computing technologies with Intel’s CPUs and vast x86 ecosystem, a combination of two world-class platforms. Together, the companies aim to expand their reach and build the foundation for the next generation of computing.
FYI: Intel shares, which fell to their lowest level in over a decade earlier this year, bounced back after gaining renewed support from the Trump administration. In August, the U.S. government agreed to invest 10% in the chipmaker, giving the stock a significant boost.
