Nvidia CEO Jensen Huang on Thursday announced a $5 billion investment in Intel, finalizing a partnership to co-develop processors for data centers and personal computers. The agreement follows nearly a year of discussions between Huang and Intel CEO Lip-Bu Tan, whom Huang called a “longtime friend.”
“We thought it was going to be such an incredible investment,” Huang said during a call with reporters. Tan, who has known Huang for 30 years, said he was thankful for Nvidia’s trust, promising Intel would deliver a strong return.
The deal will combine Intel’s x86 central processors with Nvidia’s graphics and networking technology to create artificial intelligence systems for large-scale data centers. Intel will also sell PC and notebook chips that integrate Nvidia graphics. Huang said Nvidia will buy Intel CPUs for use in its NVLink supercomputers, adding that the companies’ product collaborations represent a $50 billion market opportunity. He also confirmed that Nvidia will provide GPU technology for Intel chips in laptops, a market he described as underserved.
The partnership highlights a major shift in Silicon Valley’s power balance. Nvidia’s valuation has surged to more than $4.25 trillion, fueled by the AI boom that followed the launch of ChatGPT in 2022. Intel, meanwhile, has slipped to $143 billion in market value, with its shares down nearly 32% over the past five years, while Nvidia’s stock has climbed 1,348%.
Intel is undergoing a transformation under Tan, who replaced Pat Gelsinger as chief executive in March after rising costs and setbacks in AI manufacturing. Tan has focused on restructuring, cutting 15% of staff, and raising money through deals such as selling stakes in Altera and Mobileye. The company has also secured $8.9 billion in U.S. government funding through the CHIPS Act, though the Trump administration negotiated a 10% equity stake in exchange. Nvidia’s agreement with Intel was reached independently of that deal, according to Huang.
“Intel’s new partnership with Nvidia is a major milestone for American high-tech manufacturing,” White House spokesman Kush Desai said in a statement.
The collaboration will use Intel’s packaging technology, which combines components into finished chips, but it does not currently extend to Intel’s foundry division. Nvidia still relies on Taiwan Semiconductor Manufacturing Company for chip production, though Huang said future foundry partnerships with Intel remain possible. He emphasized that the agreement would not affect Nvidia’s relationship with Arm.
The announcement underscores how Nvidia has become the dominant player in artificial intelligence infrastructure, while Intel is seeking to regain relevance in an industry it once led.
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