Nvidia, the world’s leading chipmaker, announced on Thursday that it’s investing $5 billion in Intel and will collaborate with the struggling semiconductor company.
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 U.S. government took a 10% stake in Intel.
Nvidia CEO Jensen Huang called it “a fusion of two world-class platforms” that combines Intel’s strength in making conventional computer chips, known as CPUs, that power most laptops, with Nvidia’s focus on the specialized graphics chips that are critical for artificial intelligence.
“This partnership is a recognition that computing has fundamentally changed,” Huang told reporters Thursday. “The era of accelerated and AI computing has arrived.”
Intel shares jumped nearly 23%, its biggest one-day percentage gain since 1987. Nvidia shares added more than 3%.
For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. For personal computer products, Intel will build chips that integrate Nvidia technology.
From apnews.comHuang has been in Britain on a visit that coincides with Trump’s trip to the country, and he has been attending events with the president along with other Silicon Valley bigwigs.
At a signing ceremony for a trans-Atlantic tech partnership on Thursday with British Prime Minister Keir Starmer, Trump mused that AI was “taking over the world.”
“I’m looking at you guys. You’re taking over the world, Jensen,” Trump said.
Huang and Trump also both attended a royal banquet, prompting the tech mogul to dish about the Windsor Castle event to Intel’s CEO in the seconds before their press event.
I think I'm going to miss the old Intel, even with the years of stagnation before AMD started challenging them. It's not clear whether Intel's Arc video cards will survive the collaboration with Nvidia.
