Nvidia's $5B Intel Bet Aims to Redefine AI's Future

Nvidia and Intel have announced a major collaboration to co-develop multiple generations of custom data center and personal computing products, aiming to accelerate applications and workloads across hyperscale, enterprise, and consumer markets. As part of the deal, Nvidia will invest $5 billion in Intel common stock at $23.28 per share, acquiring a roughly 4% stake and becoming one of Intel’s largest shareholders. The investment, which represents a slight discount to Intel’s previous trading price, is subject to regulatory approvals and customary closing conditions.

The partnership centers on integrating the strengths of Intel’s CPU technologies and x86 ecosystem with Nvidia’s AI and accelerated computing capabilities. For data centers, Intel will manufacture a new line of x86 CPUs customized for Nvidia’s AI infrastructure platforms, which will be offered to enterprise and hyperscale customers. In the personal computing segment, Intel will produce x86 system-on-chips (SOCs) that incorporate chiplets of Nvidia’s RTX GPUs. These chips, dubbed “x86 RTX SoCs,” will power a wide range of PCs, combining high-performance CPUs with advanced GPU capabilities.

Nvidia CEO Jensen Huang described the collaboration as a “historic” partnership, emphasizing how it tightly couples Nvidia’s AI stack with Intel’s CPUs and x86 ecosystem to “lay the foundation for the next era of computing.” Intel CEO Lip-Bu Tan added that the integration of their technologies would allow for new breakthroughs in the industry, particularly in AI-driven applications that require fast data transfers and processing across multiple GPUs.

This deal marks a strategic turnaround for Intel, which has struggled in recent years to keep pace with the rapid advancements in AI chip development. The company has faced financial and operational challenges, including layoffs and a restructuring of its manufacturing priorities. The partnership with Nvidia is expected to help Intel regain market share from competitors like AMD and strengthen its position in a rapidly evolving semiconductor landscape. The announcement led to an immediate spike in Intel’s stock price, with shares rising as much as 30% in pre-market trading.

The collaboration also aligns with broader U.S. policy shifts regarding semiconductor exports to China. Recent regulatory actions have restricted U.S. firms from selling advanced chips to Chinese companies, a move that has significantly impacted the revenue of firms like Nvidia. By teaming up with Intel, Nvidia is positioning itself to navigate these challenges while maintaining its leadership in AI and high-performance computing. Intel, meanwhile, benefits from access to Nvidia’s advanced GPU technologies and a substantial investment from one of the semiconductor industry’s most successful players.

The deal is part of a larger trend of U.S. tech firms forming strategic alliances to counter the rising influence of China’s semiconductor industry and to maintain global competitiveness in AI and advanced manufacturing. Analysts note that the partnership could serve as a model for future collaborations that combine leading-edge design with robust manufacturing capabilities to drive innovation across the computing stack.

title1 [https://newsroom.intel.com/artificial-intelligence/intel-and-nvidia-to-jointly-develop-ai-infrastructure-and-personal-computing-products]

title2 [https://techcrunch.com/2025/09/18/nvidia-buys-5-billion-stake-in-intel-planning-ai-chip-collaboration/]

title3 [https://fortune.com/2025/09/18/nvidia-intel-5-billion-investment/]