Nvidia's $5 Billion Investment in Intel Reshapes AI Chip Landscape

Nvidia bets big on Intel with $5 billion stake and chip partnership

SAN FRANCISCO, Sept 18 (Reuters) - Nvidia (NVDA.O), opens new tab on Thursday said it will invest $5 billion in Intel (INTC.O), opens new tab, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC (2330.TW), opens new tab. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD (AMD.O), opens new tab, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged more than 32% in premarket trading, while Nvidia was up more than 3%. AMD slipped nearly 4%, while U.S.-listed shares of TSMC slid 2%. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning 4% or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. SPEEDY LINKS Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung togetherto act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom (AVGO.O), opens new tab, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 in a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia. Reporting by Stephen Nellis, Jeffery Dastin and Max Cherney in San Francisco; Editing by Sam Holmes Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced a new partnership on Thursday with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it's investing $5 billion in the common stock of Intel, which has been struggling. The deal is subject to regulatory approvals. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.

NVIDIA throws Intel a $5 billion lifeline to build PC and data center CPUs

NVIDIA has today announced it will invest $5 billion in Intel as part of a new collaboration between the two companies. In a statement, NVIDIA said it would work with its ailing rival to "jointly develop multiple generations of custom data center and PC products." The partnership will focus on "seamlessly integrating" NVIDIA's class-leading GPUs and AI chips with Intel's ailing x86 CPUs. Some of that work will be based on harnessing NVLink, NVIDIA's existing system to marry-up x86 CPUs with its own silicon in big data center setups. And Intel will also be tasked with building "NVIDIA-custom x86 CPUs" for integration with the latter company's AI products. More interestingly for consumers, however, is the news Intel will "build" what's being described as "x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets." The quote says these "RTX SOXs will power a wide range of PCs that demand integration of world-class CPUs and GPUs." Now, it's not clear if this means the end of Intel's in-house graphics silicon, or if they'll be built in Intel's own foundries. But the consequences of such a move could be wide-ranging if the focus is on broadening access to NVIDIA's high-end GPU technology. The statement includes personal remarks from both NVIDIA CEO Jensen Huang, who says the deal "tightly couples" Intel's x86 CPUs with NVIDIA's AI technology. Intel CEO Lip-Bu Tan, meanwhile, says the deal will combine its CPU know-how, its "process technology, manufacturing and advanced packaging capabilities" with NVIDIA's. If we take that at face value, it could be that NVIDIA has opted to use Intel's foundry -- chip manufacturing for third parties -- business to build some of its own silicon. But given Intel has struggled to find customers for that business, and the repeated failure of its ability to build its own chips, we'll be interested in seeing how this all shakes out. Especially if NVIDIA, for far less than the cost of buying Intel outright, has essentially turned its former rival into a sales front for its own tech. Intel's leadership space in the chip world has been eroded over the last two decades as momentum shifted toward its rivals. It developed, and then passed on, the EUV manufacturing technology that enables the chips found in most smartphones and GPUs. It was given the opportunity to invest and collaborate with OpenAI back in 2017, but passed on that and therefore missed its shot with the AI Boom. And, of course, its own engineering momentum slowed as it became harder to make faster chips with its older processes while TSMC, who went all-in on EUV, scored a galaxy of blue chip clients like Apple, Qualcomm and NVIDIA. Intel then fired then-CEO Pat Gelsinger at the end of 2024, who was widely known as the only figure who would have been able to pull Intel back from the brink. Meanwhile, rivals like Qualcomm and ARM began circling in the hope of buying some or all of the company. And while Intel has seen its previously-healthy revenues fall, NVIDIA has seen record profits on the back of the AI boom.

Chip giant Nvidia to take $5bn stake in Intel and collaborate on products

Deal gives Intel a lifeline as firms team up on AI data centers and PC chips after Trump stake sparks market surge Nvidia, the world's leading chipmaker, announced plans to invest $5bn in Intel and collaborate with the struggling semiconductor company on products. One month after the Trump administration confirmed it had taken a 10% stake in Intel - the latest extraordinary intervention by the White House in corporate America - Nvidia said it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products. Shares in Intel surged 29% during pre-market trading in New York. Nvidia rose almost 3%, bolstering its $4tn market value. Nvidia said it will spend $5bn to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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." The two companies said they will work on "seamlessly connecting" their architectures. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the AI boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19bn last year and another $3.7bn in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. Dan Ives, tech analyst at Wedbush, said: "With AI infrastructure investments continuing to grow with the company expecting between $3tn to $4tn in total AI infrastructure spend by the end of the decade, the chip landscape remains [Nvidia's] world, with everybody else paying rent, as more sovereigns and enterprises wait in line for the most advanced chips in the world."

Intel shares surge 30% as Nvidia announces $5 billion investment in America's one-time chips champion | Fortune

Nvidia has announced an unprecedented $5 billion investment in Intel, signaling a strategic pivot in the global chip industry and marking a lifeline for the once-dominant but recently embattled U.S. chipmaker. This move comes soon after a whirlwind of corporate and political drama involving Intel, America's one-time semiconductor chips champion, that saw President Trump call for the resignation of CEO Lip-Bu Tan, his sudden reversal, and then the U.S. government itself making an unprecedented investment into Intel, taking a nearly 10% stake in the process. Nvidia, the world's leader in artificial intelligence chips, announced it will invest $5 billion in Intel's common stock at a discounted price of $23.28 per share. The news prompted a premarket surge in Intel shares of a whopping 30%. Nvidia CEO Jensen Huang hailed the deal as a "historic collaboration" that will tightly couple Nvidia's AI and accelerated computing stack with Intel's central processing units (CPUs) and its x86 ecosystem. Specifically, Intel will build and bring to market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. "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," Huang said in the press release on the announcement. Together, he added, the companies will expand their ecosystems and "lay the foundation for the next era of computing." "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," said Lip-Bu Tan in the same release. He added that Intel's data center and client computing platforms, and its process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA's "AI and accelerated computing leadership to enable new breakthroughs for the industry." The partnership follows a dramatic series of events that began in August, when President Trump, via Truth Social, publicly demanded the Lip-Bu Tan's resignation. Trump called Tan "highly conflicted," citing reported ties to Chinese tech interests and mounting national security concerns raised by lawmakers and the media, specifically reporting in the Financial Times and Reuters and a strongly worded letter from Sen. Tom Cotton. Tan, previously at Cadence Design and a respected figure in Silicon Valley, rebuffed the demands, asserting his commitment to the "highest legal and ethical standards," but did not confirm divestiture from the flagged firms. Just days later, Trump reversed course during a White House meeting, praising Tan's "amazing story" and inviting him for further cabinet-level discussions. The shift followed bipartisan calls to strengthen America's semiconductor industry amid rising technological competition with China -- a sentiment that foreshadowed the federal government's own historic actions. Four former Intel directors had written a commentary for Fortune shortly before this drama ensued, expressing a lack of faith in current leadership, including Lip-Bu Tan. Fortune's Geoff Colvin reported that Intel has been widely understood to have fallen into a 20-year decline. Nvidia -- the most valuable company in the world with a market cap over $4 trillion -- slightly disappointed markets in its last earnings report as sales of chips in China were missing compared to previous quarters. The backdrop, as reported by Fortune's Nicholas Gordon, is that China is racing to essentially create its own version of Nvidia. Since 2022, Nvidia has been barred from selling its most advanced chips to Chinese companies, and it's attempted to work around that with new chip designs that can be sold, but that has also been tough sledding. Washington is tightening its export controls, and Nvidia is designing new products to comply, but pressure from Beijing remains, with a finding this month that Nvidia violated Chinese antitrust laws. Nvidia warned in its earnings that it "may be unable to create a competitive product for China's data center market that receives approval from the [U.S.] government." The alliance between Nvidia and Intel, then, reflects a focus on strengthening America's chips champions. Nvidia and Intel declined to comment beyond the press release announcing the investment. The companies will be holding a press conference at 10 am PST.

Intel and Nvidia announce stunning plans to combine their CPU and GPU products for both consumer PCs and AI servers, with Nvidia taking a $5 billion stake in Intel

Cats and dogs living together. A man eating his own head. Intel and Nvidia teaming up to make APUs. I have now, officially, seen everything. That's right, peeps, Intel and Nvidia have released a joint statement revealing plans to work together to build new computing products based on Intel's x86 CPUs and Nvidia's GPUs. Oh, and Nvidia is investing $5 billion in Intel. Hold that thought. The announcement says the partnership will span both enterprise-class AI products and consumer PCs. It's the latter we're most interested in, of course, so here's what the statement has to say about that specifically: "For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs." And that really is it, barring some platitudes rolled out by Intel and Nvidia's CEOs, Lip Bu Tan and Jensen Huang respectively. So, what are we to make of it all? It's a pretty extraordinary announcement and it almost certainly wouldn't be happening if Intel wasn't in such deep trouble of late. The $5 billion Nvidia is injecting into Intel in the form of a common stock at a purchase price of $23.28 per share speaks, no shouts, to that. So, the first observation to note is that whatever the CEOs say, this is not a partnership of equals. Intel needs cash and it needs customers. This deal gives them both. The customer bit comes in the form of building "NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms" on the enterprise side of the equation. You can see how that makes sense for both parties. The consumer PC bit is a little harder to gauge. One obvious target is laptops. CPU-GPU products with an Intel SoC packaged with an Nvidia GPU die definitely makes sense for laptops. Actually, Intel has done that before but with AMD, even if Kaby Lake-G, as it was known, made little impact on the market, and never actually appeared in laptops themselves. This announcement also hardly seems like a vote of confidence for Intel's own Arc graphics, though explicit mention of "Nvidia chiplets" seems to imply fairly high performance graphics as opposed to basic integrated GPUs, which Intel will still need for its CPUs. So, perhaps Arc will live on in that form. Beyond that, it gets a little speculative. Speaking of AMD, there are parallels with AMD's partnership with Microsoft on a family of SoCs for Xbox, handheld gaming PCs and beyond. An Intel-Nvidia alliance could certainly come up with something to take on AMD's plans there head on. Were I to speculate, I'd say this feels like a hedge against both excessive AMD dominance in the traditional PC and gaming console space, plus some forward thinking from Nvidia should the AI boom dampen down. Nvidia certainly wouldn't want to be left just selling a few GPUs to gamers should AI GPU sales nosedive. Being much more instrumental to the broader PC platform would make a lot of sense and a partnership with Intel that also includes an equity stake is a clear step in that direction. One of the complications here involves the arcane licensing stipulations around the x86 ISA. As things stand and as we understand it, the cross licensing arrangement with AMD re x86 means that it wouldn't be possible for Nvidia to simply buy Intel and then make x86 CPUs. Intel has to remain an ostensibly independent entity to maintain its x86 license, as does AMD. No doubt there are financial engineers at investment banks who would relish the opportunity to structure a deal where Intel remains notionally independent but in practice under Nvidia's control. And this announcement could be a step in that direction. On the other hand, it could just be that Nvidia sees it as in their interest to keep Intel alive. Microsoft took a similar view many years ago when it chucked Apple some cash to keep it afloat with a view to avoiding regulators viewing Microsoft as a monopoly. Nvidia might like to see Intel survive for similar reasons, especially in the current geopolitical environment where two US giants teaming up like this would presumably be looked upon favourably by the current White House administration. Of course, maybe Nvidia just wants to ensure a counterbalance against AMD. If Intel were to die, AMD wold dominate x86 and the PC. Nvidia surely doesn't want that eventuality, so keeping Intel afloat definitely has at least some advantages for Nvidia. Anywho, this is all very early days for this announcement. There's a press conference with CEOs Lip Bu Tan and Jensen Huang later today which we'll be watching very carefully indeed.

Nvidia to invest $5B in Intel; companies will work together on AI infrastructure, PCs

NEW YORK -- Nvidia, the world's leading chipmaker, announced a new partnership on Thursday with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it's investing $5 billion in the common stock of Intel, which has been struggling. The deal is subject to regulatory approvals. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.

Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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." The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. In premarket trading, Intel shares soared 30%. Nvida shares added 3%.

Nvidia to invest $5 billion in Intel; companies will work together on AI infrastructure and PCs

NEW YORK (AP) -- Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products. Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. "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." The two companies said they will work on "seamlessly connecting" their architectures. For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. In premarket trading, Intel shares jumped 30%. Nvidia shares added 3%.

Nvidia Bets Big on Intel With $5B Investment

Intel shares soared in premarket trading Thursday following the news. Nvidia shares also climbed. Nvidia (NVDA) is investing $5 billion in Intel and will jointly develop chips and data centers, the companies announced Thursday. Nvidia, the chip designer at the heart of the AI boom, said it will buy Intel common stock at $23.28 a share -- around 7% below where they closed yesterday. The news of the tie-up between the two American chipmakers sent shares of government-backed Intel soaring 28% in premarket trading, while Nvidia shares climbed 3%. Intel will build custom data center chips that Nvidia will "integrate into its AI infrastructure platforms and offer to the market," and also make chips that will integrate "Nvidia RTX GPU chiplets," the companies said. Nvidia CEO Jensen Huang called it a "historic collaboration" that fuses two "world-class platforms," adding "together, we will expand our ecosystems and lay the foundation for the next era of computing." Intel CEO Lip-Bu Tan, meanwhile, said the company'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." Once a leading chipmaker, Intel has fallen behind rivals like chip manufacturer TSMC (TSM) and struggled to keep up with technological advancements in the space. The Trump administration is pushing to make the company a national champion in the production of AI chips, however, and last month said it would take a 10% stake in the company.

Intel shares soar 30% in pre-market trade on Nvidia's $5 bn investment boost, strategic product collaboration

Intel shares soared over 30% in pre-market trade after announcing a $5 billion investment from Nvidia and a landmark collaboration to co-develop custom data center CPUs and x86 RTX SOCs for PCs, integrating NVIDIA's AI and Intel's CPU strengths. Shares of Intel Corporation surged over 30% on Thursday in the pre-market session after the company announced that it will collaborate with chipmaker Nvidia to jointly develop multiple generations of custom data center and PC products that would accelerate applications and workloads across hyperscale, enterprise and consumer markets. Nvidia will invest $5 billion in Intel's common stock at a purchase price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals. Intel Corporation shares were hovering around $31.87 on the Nasdaq around 7:44 AM ET (5:15 pm India time). The shares had settled at $24.90 on Wednesday, down 1.5%. Ahead of the US stock market opening today, the company made this announcement in its filing to the exchanges. Intel said that both companies will focus on seamlessly connecting NVIDIA and Intel architectures using NVIDIA NVLink -- integrating the strengths of NVIDIA's AI and accelerated computing with Intel's leading CPU technologies and x86 ecosystem to deliver cutting-edge solutions for customers. For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market. For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets, the filing said, adding that these new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs. Commenting on the development, Nvidia founder and CEO Jensen Huang said that AI is powering a new industrial revolution and reinventing every layer of the computing stack -- from silicon to systems to software and 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," the company filing said quoting Huang. Meanwhile, Lip-Bu Tan, CEO of Intel said that Intel's x86 architecture has been foundational to modern computing for decades -- and the company is 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," Tan said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

NVIDIA To Invest $5 Billion Into Intel In a Blockbuster Deal; Team Blue To Build New x86 SoCs Featuring NVIDIA's RTX GPUs Onboard

NVIDIA has announced a $5 billion deal with Intel, and both firms will collaborate on joint chip development that will focus on consumer and AI computing segments. This is a breakthrough for Intel, since a partnership with NVIDIA means that Team Blue will see confidence from the markets in its products, especially those that focus on the x86 architecture. According to a blog post shared by NVIDIA, it is revealed that Intel will build custom x86 chips for NVIDIA that feature RTX GPUs onboard, which means we are looking at custom CPU solutions coming from Team Green in collaborating with Intel. More importantly, the announcement also focuses on building NVIDIA's x86-CPUs for integration in AI clusters. After getting the required regulatory approval, NVIDIA will invest $5 billion in Intel's common stock at $23.28 per share. The partnership comes after SoftBank and the Trump administration focused on Team Blue, and NVIDIA's attention means there is an inclination towards the American chipmaker. For data centers, Intel will build NVIDIA-custom x86 CPUs that NVIDIA will integrate into its AI infrastructure platforms and offer to the market. For personal computing, Intel will build and offer to the market x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These new x86 RTX SOCs will power a wide range of PCs that demand integration of world-class CPUs and GPUs. We are still unaware of the specifics of the above-mentioned products, but it seems like a joint venture in computing products is the focus here. Despite Intel's sluggish years with its x86 products, the firm is still the dominant adopter of the architecture, and since NVIDIA is one of the leaders in the graphics segment, a combined product could prove to be phenomenal. We will update the report once details emerge.

Nvidia, Intel sign blockbuster deal to co-develop chips; Nvidia to take $5B stake in Intel (INTC:NASDAQ)

Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC) announced a blockbuster deal on Thursday to co-develop PC and data center chips. Simultaneously, Nvidia said it would take a $5B stake in Intel. Nvidia shares rose 2.2% in premarket trading, while Intel soared 32%. If Intel shares open at that level, it would be the highest in over a year. As part of the deal, the two companies will use Nvidia's NVLink, bringing Nvidia's artificial intelligence and accelerated computing strength and Intel's x86 architecture. Intel will build Nvidia-custom x86 CPUs for the data center, and Intel will build and offer x86 system-on-chips that integrate into Nvidia's RTX GPUs. The RTX system-on-chips will be aimed at the PC market. In addition to the deal, Nvidia said it would invest $5B in Intel's common stock at a price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals, the companies said. "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," said NVIDIA founder and CEO Jensen Huang in a statement. "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." "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," said Lip-Bu Tan, CEO of Intel. "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 two companies will hold a press conference at 1 p.m. EST to discuss the deal. This is breaking news... More on Intel and Nvidia Today's chaos. Tomorrow's opportunity Seeking Alpha helps you make sense of the headlines. New! Get unlimited breaking stock news for free -- so you can stay on track for a stronger financial future.

Nvidia bets big on Intel with US$5 billion stake and chip partnership

SAN FRANCISCO, -- Nvidia on Thursday said it will invest US$5 billion in Intel, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD AMD.O, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged more than 32 per cent in premarket trading, while Nvidia was up more than three per cent. AMD slipped nearly four per cent, while U.S.-listed shares of TSMC slid two per cent. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10 per cent stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning four per cent or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its artifical intelligence (AI) chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung together to act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 in a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia.

Nvidia and Intel forge $5 billion partnership for custom chips By Investing.com

SANTA CLARA - Nvidia (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) announced Thursday a strategic partnership to jointly develop custom data center and PC products, with Nvidia investing $5 billion in Intel's common stock. Intel, a prominent player in the Semiconductors industry with a market capitalization of $115.82 billion, has seen its stock surge over 24% year-to-date according to InvestingPro data. The collaboration will connect Nvidia's AI and accelerated computing technologies with Intel's CPU capabilities through Nvidia NVLink. Under the agreement, Intel will build Nvidia-custom x86 CPUs for data centers that Nvidia will integrate into its AI infrastructure platforms. For personal computing, Intel will develop x86 system-on-chips incorporating Nvidia RTX GPU chiplets, designed to power PCs requiring integrated high-performance CPUs and GPUs. Nvidia's investment in Intel will be at $23.28 per share, subject to regulatory approvals and other closing conditions. "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," said Nvidia founder and CEO Jensen Huang. Intel CEO Lip-Bu Tan stated, "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." The partnership aims to deliver solutions across hyperscale, enterprise and consumer markets by leveraging the strengths of both companies. The announcement was made in a press release statement from the companies. In other recent news, Intel Corporation has announced significant changes and developments. The company has amended its Direct Funding Agreement with the US Department of Commerce, resulting in a $5.7 billion disbursement. This amendment releases Intel from previous project milestone requirements and certain conditions tied to federal support under the CHIPS Act. Additionally, Intel filed a prospectus supplement to register the potential resale of shares and a warrant with the Securities and Exchange Commission. This filing involves a warrant to purchase up to 240,516,150 shares of Intel's common stock and several shares issued to the Department of Commerce. In leadership news, Intel has appointed Kevork Kechichian as executive vice president and general manager of the Data Center Group, aiming to strengthen its core business and engineering culture. Michelle Johnston Holthaus, CEO of Intel Products, has announced her decision to resign, agreeing to assist in the transition process until March 2026. Truist Securities has maintained its Hold rating on Intel stock, citing a long and uncertain recovery path despite the company's ongoing turnaround efforts. These developments highlight Intel's strategic moves to enhance its business operations and financial structure. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nvidia to invest five billion dollars in Intel as firms announce new partnership | BreakingNews

The world's leading chipmaker Nvidia has announced a new partnership with struggling semiconductor company Intel. Nvidia and Intel will team up to work on custom data centres that form the backbone of artificial intelligence (AI) infrastructure as well as personal computer products, Nvidia said in a press release. Nvidia also said it is investing five billion dollars (£3.6 billion) in the common stock of Intel, which has been struggling. The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that has propelled Nvidia into the world's most valuable company.

Nvidia signs collaboration agreement with Intel, with $5bn investment

On Thursday, Nvidia and Intel formalized a collaboration agreement that will result in a $5bn investment by the AI chip specialist in the microprocessor manufacturer, which is currently experiencing difficulties. In a press release, the two groups said that this strategic partnership aims to jointly develop a range of "custom-built" products for data centers and personal computers, in order to accelerate applications and workloads for the hyperscale, enterprise, and consumer markets. The agreement provides for close integration of the two groups' architectures via Nvidia's NVLink technology, with the idea of combining the GPU specialist's accelerated computing and artificial intelligence (AI) power with Intel's x86 processors. In the data center space, Intel will manufacture custom x86 processors for Nvidia, which will integrate them into its AI infrastructure platforms and offer them directly to the market. In the PC segment, Intel will produce and market new x86 systems-on-chip (SoCs) integrating Nvidia RTX GPU chiplets. At current prices, Nvidia's stake -- which will be priced at $23.28, a 6.5% discount to Wednesday evening's closing price -- represents around 4.3% of Intel's capital. Following these announcements, Intel shares were expected to rise 29% on Thursday morning on the New York Stock Exchange, while Nvidia shares posted gains exceeding 3% in pre-market trading.

Nvidia boosts Intel by 30% with a $5bn investment

After the US government's $10bn investment, Nvidia has decided to inject $5bn into Intel, which is still struggling. This investment is aimed at jointly developing CPUs for gaming and artificial intelligence, as well as building new data centers. The immediate result: Intel's stock soared nearly 30% in pre-market trading on Wall Street on Thursday. However, the announcement has raised some concerns about a potential merger between Intel Foundry Services (IFS) and Nvidia. Some see it as a strategy approved by the White House to reduce dependence on TSMC in the GPU giant's supply chain. But William Beavington, semiconductor analyst at Jefferies, tempers this view: in his opinion, IFS is not mentioned in this agreement, and these fears are exaggerated for the moment. Two major questions arise from this merger. First, Nvidia currently uses Arm architecture CPUs in its rack-mountable solutions. Does this partnership with Intel spell the end of this collaboration? Second, AMD is developing new chips for AI, which have received positive initial feedback. However, Nvidia has chosen to bet on Intel, which until now has been considered the "lame duck" of the industry. The market has reacted accordingly: while semiconductors are benefiting overall from this announcement, AMD is down about 4% in pre-market trading.

Nvidia to Invest $5 Billion in Intel as Part of AI and PC Products Partnership -- Update

Nvidia will inject $5 billion into Intel as part of a collaboration between the tech giants to jointly develop custom data center and personal computing products. Nvidia will buy Intel stock at a purchase price of $23.28 a share. Shares of Intel shot up nearly 31% in premarket trading to $24.90 Thursday. Nvidia shares rose 2.7% to $174.86. Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and will also build chip systems to be used in Nvidia chiplets that power PCs. "This historic collaboration tightly couples NVIDIA's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem," said Nvidia Chief Executive Jensen Huang.

Nvidia bets big on Intel with $5 billion stake and chip partnership

SAN FRANCISCO (Reuters) - Nvidia on Thursday said it will invest $5 billion in Intel, throwing its heft behind the struggling U.S. chip foundry, but stopped short of giving Intel a crucial manufacturing deal. The pact, which also includes a plan for Intel and Nvidia to jointly develop PC and data center chips, represents a potential risk to Taiwan's TSMC. TSMC currently manufactures Nvidia's flagship processors, business that the world's most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centers, also stands to lose thanks to Nvidia's backing. Shares of Intel surged 12% in premarket trading, while Nvidia was up 2%. Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month. Nvidia will become one of Intel's largest shareholders, likely owning 4% or more of the company after new shares are issued to complete the deal. Nvidia's support represents a new opening for Intel after years of turnaround efforts at the famed U.S. manufacturer failed to pay off. The company - once the chip industry's flagbearer that claimed to put the "silicon" in Silicon Valley - appointed a new CEO, Lip-Bu Tan, in March. Tan has vowed to make Intel's operation lean and build factory capacity only when there's demand to match it. Crucially, the deal will not involve Intel's contract manufacturing business, known as a "foundry" in the chip industry, making chips for Nvidia. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom. But the deal adds to a growing reserve of capital that Intel has accumulated weeks after it announced a $2 billion investment from Softbank and received $5.7 billion from the U.S. government. David Zinsner, Intel's chief financial officer, told investors at a Deutsche Bank conference last month that the company was in a "good cash position" and would not require much more capital until it saw significant demand for 14A, a next-generation manufacturing process that it expects to invest heavily in building. SPEEDY LINKS Under the deal announced Thursday, Intel is planning to design custom data center central processors that Nvidia will package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before. Those speedy links are a key differentiator in the AI market because many chips must be strung togetherto act as one to chew through massive amounts of data. At present, Nvidia's best-selling AI servers with those speedy links are only available using Nvidia's own chips, but the deal would now put Intel on equal footing, giving it a chance to make money off each Nvidia server. The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and helps companies such as Google develop AI chips. For consumer markets, Nvidia will provide Intel with a custom graphics chip that Intel can package with its PC central processors with the same speedy links, potentially giving it an edge against rivals such as AMD. While Intel's x86 computing architecture has lost ground in both data centers and PCs to chips with technology from Arm Ltd, it still has majority market share. "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 in a press release. "Together, we will expand our ecosystems and lay the foundation for the next era of computing." The two companies did not disclose financial terms of their technical collaboration but said they would make "multiple generations" of future products. Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products and said there was no licensing component to the deal. The companies declined to give a date for when the first joint products will come to market but said that their product plans prior to the joint deal have not changed. Nvidia in recent years has entered both the PC central processor market and the data center central processor market. Intel meanwhile has tried to sell several AI chips that compete with Nvidia and has said it plans to develop an AI data center server that would compete with Nvidia. (Reporting by Stephen Nellis, Jeffery Dastin and Max Cherney in San Francisco; Editing by Sam Holmes)