Nvidia, the world鈥檚 leading chipmaker, announced on Thursday that it鈥檚 investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products.
Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release.
Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals.
鈥淭his historic collaboration tightly couples NVIDIA鈥檚 AI and accelerated computing stack with Intel鈥檚 CPUs and the vast x86 ecosystem 鈥� a fusion of two world-class platforms,鈥� Nvidia CEO Jensen Huang said. 鈥淭ogether, we will expand our ecosystems and lay the foundation for the next era of computing.鈥�
The two companies said they will work on 鈥渟eamlessly connecting鈥� their architectures.
For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology.
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鈥檚 2007 debut.
In July, Intel said it was further slowing construction of its $28-billion project to build two chip fabrication plants in New Albany.
Last month, President Trump announced the government took a roughly 10% stake in Intel, becoming its biggest single shareholder.
Intel fell even farther behind in recent years amid the artificial intelligence boom that鈥檚 propelled Nvidia into the world鈥檚 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.
Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems.
In premarket trading, Intel shares jumped 30%. Nvidia shares added 3%.
