A New Era of Collaboration: Nvidia invests $5 billion in Intel to forge a united future in AI and PCs
American tech giant Nvidia has announced a major investment in its rival, Intel, amounting to 5 billion U.S.
dollars.
This strategic move involves purchasing common shares at a price of $23.28 per share and jointly developing cutting-edge products for data centers and personal computers.
According to The Wall Street Journal, this initiative marks a significant step towards redefining the competitive landscape in the technology industry.
Investors responded positively, with Intel’s shares soaring nearly 30% in pre-market trading on Thursday, September 18, while Nvidia’s stock increased by about 3%.
Experts highlight that this partnership is quite unexpected: Nvidia has become a symbol of the AI boom, whereas Intel has struggled to keep pace with industry leaders in recent years.
Nvidia’s investment also aligns with broader efforts to support and revitalize Intel, especially after the U.S.
government acquired a 10% stake in the company last month.
Furthermore, in August, Intel finalized a deal with Japanese conglomerate SoftBank, which invested $2 billion in the chip manufacturer.
Under this partnership, Intel will develop specialized x86 processors for Nvidia, integrating them into its AI infrastructure platforms and microchip systems for chiplets in personal computers.
This collaboration is expected to lay the groundwork for expanding technological ecosystems and enhancing computing capabilities.
Nvidia’s CEO Jensen Huang expressed optimism, stating, “Together, we will expand our ecosystems and lay the foundation for the next era of computing.” Market reactions have been favorable, as investors believe that the alliance will help Intel regain dominance in the high-performance AI chip market, a domain currently led by Nvidia.
It’s worth noting that in early August, former U.S.
President Donald Trump publicly called for the removal of Intel’s CEO, Pat Gelsinger, due to his ties with China.
However, after a personal meeting with Intel’s leadership, Trump changed his stance and sees potential in expanding collaborative efforts.