Nvidia has made a bold move, investing $5 billion to acquire about 4% of Intel’s shares. The purpose isn’t just about owning equity—it’s part of a broader agreement for both companies to co-develop future generations of chips, targeting data centers and personal computers.
Under this deal, Intel will build custom x86 CPUs tailored to Nvidia’s AI infrastructure for server use. On the PC side, Intel plans to produce system-on-chips that integrate Nvidia’s GPU tech (RTX chiplets), creating new hybrid CPU/GPU designs. These efforts aim to offer more tightly integrated performance for AI workloads and graphics.
The transaction values Intel shares at roughly $23.28 each, slightly below recent market prices. The stock reacted strongly: Intel shares jumped in early trading after the announcement. Nvidia’s move positions it as one of Intel’s major shareholders, giving it a stake in Intel’s resurgence as a competitive player in AI infrastructure.
Intel has faced several challenges in recent years, from missed foundry milestones to lagging behind in AI-specific chips. Meanwhile, Nvidia has surged ahead thanks to its dominance in GPU-based AI and cloud computing. This partnership offers Intel a chance to lean on Nvidia’s AI leadership while contributing its long-established CPU and packaging expertise.
Analysts suggest this is more than just a financial investment. It’s a signal of how U.S. chipmakers may need to collaborate more closely to compete globally, especially as competition heats up in key areas like AI training, inference, and advanced packaging. For now, though, it remains to be seen how much of the collaboration will rely on Intel’s manufacturing resources versus Nvidia’s existing supply partners.
