Nvidia has announced it will invest $5 billion in Intel in a deal that will make the chip giant one of Intel’s largest shareholders.
The collaboration will have the companies jointly develop multiple generations of custom data center and PC products that speed up applications and workloads across hyperscale, enterprise, and consumer markets.
Under the agreement, Nvidia will purchase $5 billion of Intel common stock at $23.28 per share.
In a joint press release, NVIDIA founder and CEO Jensen Huang told investors, “AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture. 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. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Lip-Bu Tan, CEO of Intel stated, “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. Intel’s leading data center and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry. 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.”
The partnership strengthens U.S. initiatives to support its semiconductor industry amid increasing Chinese restrictions and Huawei’s AI goals.
The announcement of the deal caused Intel shares to jump 23%, their largest single-day increase since 1987, while Nvidia rose over 3%.
By CEO NA Editorial Staff
