In short
- NVIDIA invested Intel $ 5 billion and agreed to develop adapted chips for PCs and data centers.
- Jensen Huang has framed the deal as accelerating Nvidia’s computing with Intel’s X86 platforms.
- The move followed that China forbade local technology companies to buy Nvidia AI chips.
NVIDIA announced on Thursday that it would invest $ 5 billion in Intel and collaborate on adapted chips for data centers and personal computers, as a result of which Intel’s battered shares rise 23% in early trade.
The investment, which Nvidia would buy, around 215 million Intel shares at $ 23.28 each, comes only a few weeks after the Trump administration had a 10% interest in the wrestling chip maker.
According to the agreement, Intel will develop adjusted X86 CPUs that is optimized for NVIDIA AI platforms, which may solve long-term bottlenecks in CPU-GPU communication. For personal computers, Intel will build system-on-chip designs with the RTX-graphic technology from Nvidia.
“This historical collaboration links the AI of Nvidia tightly and accelerated the computer stack with Intel’s CPUs and the huge X86 ecosystem-a merger of two world-class platforms,” said Nvidia CEO Jensen Huang in the announcement. “Together we will expand our ecosystems and lay the foundation for the next era of computer use.”
NVIDIA shares climbed 3%and pushed the market value of the company beyond $ 4 trillion, giving the company a relief after the rapid panic caused by a decision from China to ban its chips.
The deal throws Intel a lifeline at a crucial moment. The company that once dominated Silicon Valley, lost almost $ 19 billion last year and another $ 3.7 billion in the first half of 2025. It is planning to reduce 25% of his workforce at the end of the year
However, this is not just a lifeline and the partnership is actually mutual beneficial. For Nvidia this means deeper access to the X86 architecture that still drives most business systems. For Intel it is an opportunity to use Nvidia’s AI -Dominance to remain relevant.
By working together, Intel can use Nvidia’s powerful AI technology in its own computer chips. This means that companies and ordinary people get “smarter” computers from Intel, all thanks to the know -how of Nvidia, so that Intel keeps a big player, even if technology changes quickly
Pop de Champagne, Intel
“Pop The Champagne,” Dan Ives, Tech analyst at Wedbush Securities, told Bloomberg. “It brings Intel to the AI game. This is also viewed very positively in DC,” he said
The earlier intervention of the Trump administration had already indicated the strategic importance of Intel. The investment of $ 8.9 billion from the government for an interest of 10% was part of broader efforts to guarantee domestic chip production in the midst of tensions with China. Trump has threatened 100% rates for imported chips while negotiating export offers with which Nvidia and AMD AI chips with a lower capacity can sell to China in exchange for a turnover of 15%.
Trump’s efforts to limit the export of good chips to China and only to give licenses to sell Nerfed chips, finally ended in a decision from China to ban the use of Nvidia chips (good or bad) and to promote the use of domestic alternatives.
Intel CEO LIP-BU TAN, who took over it in March 2025 with a mandate to restore the company’s production, was the NVIDIA partnership as validation of the core strengths of Intel. “The leading data center and client computer platforms from Intel, in combination with our process technology, production and advanced packaging options, will supplement Nvidia’s AI and accelerated computer leadership to enable new breakthroughs for industry,” he said in the official announcement.
Market guards see the deal as confirmation of the position of Nvidia on top of the chip industry. The company reported $ 46.7 billion in quarterly sales in Q2 2025, an increase of 56% compared to a year earlier.
“With AI infrastructure investments that continue to grow with the company that spend between $ 3 trillion up to $ 4 trillion in total AI infrastructure at the end of the decade, the chipl landscape remains [Nvidia’s] World, with everyone who pays rent, ‘wrote Ives in a customer letter according to The Guardian.
The partnership explains pressure on AMD, which is now confronted with a combined Intel-Nvidia Force in both AI and PC markets. It also strengthens the push to build American chip capacity, because global supply chains remain fragile.
The deal requires legal approval. Neither of the companies unveiled a timeline when the first jointly developed products would reach the market.
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