Nvidia invests $5B in Intel partnership

Nvidia announced a $5 billion investment in Intel and a new product partnership, marking a major step in Intel’s comeback bid. 

The deal gives Intel a bigger foothold in the fast-growing data center market while letting Nvidia offer computing packages that combine its AI chips with Intel’s powerful X86 CPUs. 

Nvidia will buy Intel stock at $23.28 per share, slightly below Wednesday’s close. Intel shares jumped 23% Thursday to $30.57, rewarding investors after years of setbacks.

Under the agreement, Intel will design custom CPUs that integrate seamlessly with Nvidia’s GPUs, making them more competitive in PCs and edge computing. 

CEO Jensen Huang called the deal “historic,” saying his company will become a major buyer of Intel server CPUs for the first time.

The partnership follows Intel’s recent $2 billion investment from SoftBank and a US government stake now worth 50% more.

Analysts say the alliance boosts Intel’s turnaround but does not solve its manufacturing challenges.