Tech Giant Nvidia Doles Out $5 Billion to Intel
Nvidia and Intel Announce Strategic Partnership
In a significant development for the technology industry, Nvidia and Intel have announced a strategic partnership that could potentially reshape the landscape, particularly in the areas of AI and data centers.
The partnership, announced on September 18, 2025, involves a mutual collaboration on chip development and the integration of Nvidia's GPU technology with Intel's CPUs. As part of this collaboration, Nvidia has committed to investing $5 billion (€4.2 billion) in Intel common stock.
According to Nvidia CEO Jensen Huang, this deal marks a "merger of two premier platforms." Dan Ives, global tech research lead at financial services firm Wedbush, described the deal as a groundbreaking moment for Intel, placing the company at the center of the AI business.
The investment from Nvidia is noteworthy, considering Intel's recent struggles and losses of ground to competing chipmakers like Nvidia in recent years. The U.S. government has also shown support for Intel, investing $8.9 billion (€7.6 billion) for a 9.9% stake in the company, funded by grants Intel received through previous government programs.
If approved by regulators, Nvidia could become one of Intel's largest shareholders. The proposed price of $23.28 (€20) per Intel share is below Wednesday's closing price of $24.90 (€21), but above the $20.47 (€17.50) per share agreed upon by the U.S. government in August.
The partnership between the two companies will see them developing tailored products. Nvidia will integrate custom Intel CPUs into its AI infrastructure for data centers, while Intel will incorporate Nvidia's graphics processors into the chipsets it sells to PC customers.
The news has been well-received by the market. Intel's market cap was $116 billion (€98.6 billion) on Wednesday. On Thursday, Intel stock surged 29% in pre-market trading, while Nvidia saw its shares rise by 3% before market open.
However, it's important to note that the approval for Nvidia's $5 billion investment in Intel stock is still pending, awaiting regulatory approval from antitrust authorities. The deal has not yet been finalized.
This proposed investment and partnership is significant for both companies and the technology industry as a whole. It represents a potential turning point for Intel, offering a chance to regain its footing in the competitive chip market. For Nvidia, it represents an opportunity to deepen its influence in the AI and data center sectors.
In a golden week for Intel, following a recent 10% investment from the U.S. government, the potential Nvidia investment offers a glimmer of hope for investors who have been disappointed in recent years. Only time will tell if this partnership will truly mark a new era for both companies and the technology industry.
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