Nvidia has announced a $5 billion (£4.23 billion) investment in Intel, marking a rare alliance between two fierce rivals. The world’s most valuable chipmaker will buy Intel common stock at $23.28 a share, pending regulatory approval.
The two tech giants will collaborate to design and manufacture custom data centres and personal computing products. Intel will produce chips that support Nvidia’s artificial intelligence infrastructure, while also building PC processors integrated with Nvidia technology.
“This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem,” said Nvidia CEO Jensen Huang. He called it the foundation for “the next era of computing”.
The partnership gives struggling Intel a major lifeline. Once the backbone of personal computing, Intel missed the mobile revolution and fell behind in the AI race that propelled Nvidia to global dominance. News of the deal lifted Intel shares by 30% in premarket trading, while Nvidia rose nearly 3%.
However, Nvidia faces fresh geopolitical challenges. Huang expressed disappointment after reports that China had ordered tech firms to stop buying Nvidia’s AI chips. He told the BBC the US must ensure global access to technology, including in China.
Huang is in the UK with other top executives, joining US President Donald Trump’s state visit. Trump is expected to speak with Chinese President Xi Jinping as trade tensions continue.
Nvidia remains central to the global AI boom, powering data centres and investing in UK projects such as the upcoming Stargate facility.
