Nvidia and Intel forge $5 billion partnership for custom chips

SANTA CLARA - Nvidia (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) announced Thursday a strategic partnership to jointly develop custom data center and PC products, with Nvidia investing $5 billion in Intel’s common stock. Intel, a prominent player in the Semiconductors industry with a market capitalization of $115.82 billion, has seen its stock surge over 24% year-to-date according to InvestingPro data.

The collaboration will connect Nvidia’s AI and accelerated computing technologies with Intel’s CPU capabilities through Nvidia NVLink. Under the agreement, Intel will build Nvidia-custom x86 CPUs for data centers that Nvidia will integrate into its AI infrastructure platforms.

For personal computing, Intel will develop x86 system-on-chips incorporating Nvidia RTX GPU chiplets, designed to power PCs requiring integrated high-performance CPUs and GPUs.

Nvidia’s investment in Intel will be at $23.28 per share, subject to regulatory approvals and other closing conditions.

"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," said Nvidia founder and CEO Jensen Huang.

Intel CEO Lip-Bu Tan stated, "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."

The partnership aims to deliver solutions across hyperscale, enterprise and consumer markets by leveraging the strengths of both companies.

The announcement was made in a press release statement from the companies.

In other recent news, Intel Corporation has announced significant changes and developments. The company has amended its Direct Funding Agreement with the US Department of Commerce, resulting in a $5.7 billion disbursement. This amendment releases Intel from previous project milestone requirements and certain conditions tied to federal support under the CHIPS Act. Additionally, Intel filed a prospectus supplement to register the potential resale of shares and a warrant with the Securities and Exchange Commission. This filing involves a warrant to purchase up to 240,516,150 shares of Intel’s common stock and several shares issued to the Department of Commerce.

In leadership news, Intel has appointed Kevork Kechichian as executive vice president and general manager of the Data Center Group, aiming to strengthen its core business and engineering culture. Michelle Johnston Holthaus, CEO of Intel Products, has announced her decision to resign, agreeing to assist in the transition process until March 2026. Truist Securities has maintained its Hold rating on Intel stock, citing a long and uncertain recovery path despite the company’s ongoing turnaround efforts. These developments highlight Intel’s strategic moves to enhance its business operations and financial structure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.