Nvidia has announced it will purchase a $5 billion stake in rival chipmaker Intel as part of an agreement to co-develop new chips for data centers and PCs. This comes just one month after the U.S. government made a separate $8.9 billion investment in Intel.
The collaboration will combine Nvidia’s expertise in AI and accelerated computing with Intel’s powerful CPUs, aiming to create more integrated platforms for the future of computing. Under the deal, Nvidia will acquire Intel shares at a price of $23.28, giving it a 4% ownership stake. While the two companies will work together on design, Nvidia has not yet committed to having Intel manufacture the new chips.
In the PC market, Intel will integrate Nvidia’s popular RTX graphics technology into its chips, a move that is expected to be a hit with gamers and other users. The news of the deal sent Intel’s stock soaring by 29% in pre-market trading, while Nvidia’s stock also saw a 3% increase.
