NVIDIA has announced that it will invest $5 billion in Intel as part of a partnership between the two companies for creating data centers and personal computers. Both companies plan on making multiple generations of customer products that combine NVIDIA"s AI and graphics power with Intel"s CPU technology.
Perhaps the key feature of this partnership is the use of NVIDIA NVLink, which will connect NVIDIA"s AI and computing tech with Intel"s x86 CPUs. For data centers, Intel will create specialized CPUs designed by NVIDIA, which the latter would also include in its AI platforms. For personal computers, Intel will develop system-on-chip (SoC) products that include NVIDIA"s RTX graphics technology, for creating PCs that need top performance in both processing and graphics.
NVIDIA founder and CEO Jensen Huang said in the press release:
“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.”
NVIDIA will put its $5 billion investment into buying Intel shares at a price of $23.28 per share.
Lip-Bu Tan, CEO of Intel, added:
“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.”
Intel is currently in the midst of a major revival and transformation under its new leadership. After facing a significant loss of $19 billion in 2024 and years of strategic challenges, Intel is making bold moves like reducing its workforce and major restructuring across the board to regain its footing in the semiconductor and AI space, which has become super competitive in recent years.
The Trump administration has also made a historic $8.9 billion investment in the Intel common stock, which was built on the prior US CHIPS and Science Act grant. With the partnership with NVIDIA, Intel"s revival story just got another boost.