Nvidia will invest US$5 billion in Intel, acquiring common stock at US$23.3 per share, the companies announced September 18.

The partnership, pending regulatory approval, aims to develop custom data center and PC products for AI applications.

Intel has struggled to keep up with competitors, missing key technology shifts and facing rising competition from Asian manufacturers like TSMC and Samsung.

Nvidia joins investors including SoftBank and the US government, which recently took a 10% stake in Intel.

The deal does not include plans for Nvidia to use Intel’s manufacturing facilities, with Nvidia CEO Jensen Huang continuing to praise TSMC, the company’s main supplier.

Intel’s stock jumped up to 26% following the news.

Intel CEO Lip-Bu Tan said the investment supports the company’s turnaround amid a challenging market and rising US-China trade tensions.

🔗 Source: Agence France-Presse

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