Nvidia Forges Landmark $5 Billion Alliance with Intel, Reshaping AI Chip Landscape
Nvidia Forges Landmark $5 Billion Alliance with Intel, Reshaping AI Chip Landscape
In a seismic shift for the technology sector, Nvidia, the undisputed leader in artificial intelligence semiconductors, announced Thursday a strategic investment of $5 billion into its long-time rival, Intel. This groundbreaking move will see the two giants collaborate on developing next-generation chips for PCs and critical data centers, signaling a significant acceleration in the global AI race.
The news sent Intel’s shares soaring by 23% on Thursday, boosting its market capitalization to $143 billion and marking a remarkable turnaround for the chipmaker, which has seen its stock climb approximately 52% this year. Nvidia, with a valuation exceeding $4.2 trillion, also saw a 3.5% advance.
This unprecedented partnership follows a series of recent boosts for Intel, including a nearly $9 billion, 10% stake purchased by the U.S. government just weeks ago, and a $2 billion investment from Japan’s SoftBank. Tech analyst Dan Ives hailed the Nvidia deal as a ‘game changer’ for Intel, propelling it ‘front and center into the AI game’ and cementing the U.S. lead in the ‘AI Arms Race against China.’
The White House has underscored AI and chipmaking as a top national security priority, a stance reinforced by the Biden-era CHIPS Act, which funded the government’s investment in Intel. The announcement also comes amid a flurry of high-profile political engagement. Intel CEO Lip-Bu Tan, appointed in March, recently met with President Donald Trump in the Oval Office, shifting the President’s tone from a call for resignation in August to praise for Tan’s ‘amazing story.’
Further highlighting the intertwining of tech and geopolitics, Nvidia CEO Jensen Huang was a prominent figure at a state dinner at Windsor Castle on Wednesday night, accompanying President Trump and King Charles III. During Trump’s U.K. visit, Nvidia committed over $14 billion to AI and data center infrastructure across the country, with Trump publicly commending Huang at a news conference Thursday, stating, ‘You’re taking over the world, Jensen.’
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.