NVIDIA invests $5B in Intel amid ongoing chip collaboration
NVIDIA is investing $5 billion in Intel, grabbing over 4% of the company by buying shares at $23.28 each.
This comes weeks after Intel raised $11 billion from the US government and Softbank, giving Intel a much-needed financial boost as CEO Lip-Bu Tan pushes for more efficiency.
NVIDIA and Intel's partnership aims to create next-gen data center CPUs
The two tech giants are joining forces to develop next-gen data center CPUs and PCs that blend Intel processors with NVIDIA's AI GPUs, using high-speed chip connections.
Their goal? Supercharge AI servers and take on rivals like AMD and Broadcom.
Plus, NVIDIA will make custom graphics chips for Intel PCs, helping them stay strong against rising competition from Arm-based systems.
This partnership could reshape the US semiconductor landscape
By combining their strengths, NVIDIA and Intel hope to speed up growth in AI infrastructure and personal computing—and shake up who leads the chip world.
This partnership could mean less reliance on overseas manufacturing (like TSMC) for NVIDIA and a real challenge to AMD's gains in data center chips, signaling a fresh direction for US semiconductor strategy.