{"id":165934,"date":"2025-09-18T18:19:07","date_gmt":"2025-09-18T18:19:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/165934\/"},"modified":"2025-09-18T18:19:07","modified_gmt":"2025-09-18T18:19:07","slug":"nvidia-to-invest-5-billion-in-intel-working-together-on-ai-infrastructure-and-pcs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/165934\/","title":{"rendered":"Nvidia to invest $5 billion in Intel, working together on AI infrastructure and PCs"},"content":{"rendered":"<p>Nvidia, the world\u2019s leading chipmaker, announced on Thursday that it\u2019s investing $5 billion in Intel and will collaborate with the struggling semiconductor company.<\/p>\n<p>Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment, which is subject to regulatory approvals, comes a month after the <a class=\"Link AnClick-LinkEnhancement\" data-gtm-enhancement-style=\"LinkEnhancementA\" href=\"https:\/\/apnews.com\/article\/trump-intel-us-equity-stake-b538526b6698f7ebd31e99effd727693\" rel=\"nofollow noopener\" target=\"_blank\">U.S. government<\/a> took a 10% stake in Intel. <\/p>\n<p>Nvidia CEO Jensen Huang called it \u201ca fusion of two world-class platforms\u201d that combines Intel\u2019s strength in making conventional computer chips, known as CPUs, that power most laptops, with Nvidia\u2019s focus on the specialized graphics chips that are critical for artificial intelligence. <\/p>\n<p>\u201cThis partnership is a recognition that computing has fundamentally changed,\u201d Huang told reporters Thursday. \u201cThe era of accelerated and AI computing has arrived.\u201d<\/p>\n<p>In morning trading, Intel shares jumped 25%, its biggest one-day percentage gain in decades. Nvidia shares added 2%.<\/p>\n<p>    <a class=\"AnchorLink\" id=\"image-a70000\"\/><\/p>\n<p><img decoding=\"async\" class=\"Image\" alt=\"Visitors give commands to a robot at Nvidia's booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, July 18, 2025. (AP Photo\/Mahesh Kumar A., File)\"  width=\"599\" height=\"399\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/1758219547_62_\" loading=\"lazy\"\/><\/p>\n<p>Visitors give commands to a robot at Nvidia\u2019s booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, July 18, 2025. (AP Photo\/Mahesh Kumar A., File)<\/p>\n<p>Visitors give commands to a robot at Nvidia\u2019s booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, July 18, 2025. (AP Photo\/Mahesh Kumar A., File)<\/p>\n<p>Read More<\/p>\n<p>For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. While for personal computer products, Intel will build chips that integrate Nvidia technology.<\/p>\n<p>The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone\u2019s 2007 debut. <\/p>\n<p>Intel fell even farther behind in recent years amid the AI boom that\u2019s propelled Nvidia into the world\u2019s most valuable company. Intel lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025.<\/p>\n<p>    <a class=\"AnchorLink\" id=\"image-000000\"\/><\/p>\n<p><img decoding=\"async\" class=\"Image\" alt=\"ARCHIVO \u2013 El logotipo de Intel en el exterior de las oficinas generales de la empresa, en Santa Clara, California, el 12 de enero de 2011. (AP Foto\/Paul Sakuma, Archivo)\"  width=\"599\" height=\"396\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/1758219547_193_\" loading=\"lazy\"\/><\/p>\n<p>ARCHIVO \u2013 El logotipo de Intel en el exterior de las oficinas generales de la empresa, en Santa Clara, California, el 12 de enero de 2011. (AP Foto\/Paul Sakuma, Archivo)<\/p>\n<p>ARCHIVO \u2013 El logotipo de Intel en el exterior de las oficinas generales de la empresa, en Santa Clara, California, el 12 de enero de 2011. (AP Foto\/Paul Sakuma, Archivo)<\/p>\n<p>Read More<\/p>\n<p>The U.S. government stepped in last month to <a class=\"Link AnClick-LinkEnhancement\" data-gtm-enhancement-style=\"LinkEnhancementA\" href=\"https:\/\/apnews.com\/article\/trump-intel-us-equity-stake-b538526b6698f7ebd31e99effd727693\" rel=\"nofollow noopener\" target=\"_blank\">secure a 10% stake<\/a> \u2014 433.3 million shares of non-voting stock priced at $20.47 apiece \u2014 making it one of Intel\u2019s biggest shareholders. Federal officials said they invested in Intel in order to bolster U.S. technology and domestic manufacturing.<\/p>\n<p>Huang said Nvidia has been in talks with Intel for about a year. Intel CEO Lip-Bu Tan, who joined the press call with Huang on Thursday, said he\u2019s been talking to Nvidia since he was named Intel\u2019s new leader in March. <\/p>\n<p>\u201cThis is a very big, important milestone,\u201d Tan said. \u201cI call it a game-changing opportunity that we can work together.\u201d<\/p>\n<p>The deal is \u201cbullish for U.S. tech,\u201d Wedbush Securities analyst Daniel Ives said in a client note.<\/p>\n<p>Ives said it brings Intel \u201cfront and center into the AI game\u201d and, combined with the U.S. government stake, adds to \u201ca golden few weeks for Intel after years of pain and frustration for investors.\u201d<\/p>\n<p>Nvidia, meanwhile, has soared because its specialized chips are underpinning the AI boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. <\/p>\n<p>The deal between the two chipmakers comes as China moves to be less dependent on U.S. semiconductor technology. This week, Chinese officials <a class=\"Link AnClick-LinkEnhancement\" data-gtm-enhancement-style=\"LinkEnhancementA\" href=\"https:\/\/www.ft.com\/content\/12adf92d-3e34-428a-8d61-c9169511915c\" target=\"_blank\" rel=\"noopener nofollow\">reportedly<\/a> forbade several large domestic technology companies from purchasing Nvidia chips, and Huawei announced that it was expanding its development of AI chips and manufacturing.<\/p>\n<p>While Nvidia and Intel will work together to develop new chips, a manufacturing deal has yet to be struck between the two. The potential access to Intel\u2019s chip foundries by Nvidia poses a risk to Taiwan Semiconductor Manufacturing Company, which currently manufactures the tech giant\u2019s flagship processors. <\/p>\n<p>Huang has been in Britain on a visit that coincides with U.S. President Donald Trump\u2019s trip to the country, and he has been attending events with the president along with other Silicon Valley bigwigs.<\/p>\n<p>At a signing ceremony for a trans-Atlantic tech partnership on Thursday with British Prime Minister Keir Starmer, Trump mused that AI was \u201ctaking over the world.\u201d<\/p>\n<p>\u201cI\u2019m looking at you guys. You\u2019re taking over the world, Jensen,\u201d Trump said.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia, the world\u2019s leading chipmaker, announced on Thursday that it\u2019s investing $5 billion in Intel and will collaborate&hellip;\n","protected":false},"author":2,"featured_media":165935,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[181,28,2356,30442,12,793,100126,11382,5886,11379,7672,54395,3487,11380,74,795,21,792,800,965],"class_list":["post-165934","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-artificial-intelligence","tag-business","tag-california","tag-daniel-ives","tag-donald-trump","tag-general-news","tag-huawei-technologies-co-ltd","tag-information-technology","tag-intel-corp","tag-jensen-huang","tag-keir-starmer","tag-lip-bu-tan","tag-nvidia-corp","tag-semiconductor-manufacturing","tag-technology","tag-u-s-news","tag-united-states","tag-united-states-government","tag-washington-news","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/165934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=165934"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/165934\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/165935"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=165934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=165934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=165934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}