Nvidia to Invest $5 Billion in Intel, Becoming a Significant Shareholder With the US Government's backing
In a significant move for the tech industry, Nvidia and Intel have announced a joint development of custom data center and personal computing products. This collaboration is expected to position Intel as a catalyst in the AI sector, moving them from a laggard position.
According to a joint press release issued by Nvidia, the tech giants will work together to create innovative solutions aimed at enhancing AI capabilities. This development is seen as a 'game-changer deal' for Intel, bringing them to the forefront of the AI industry, as suggested by analysts at Wedbush Securities.
Nvidia will be making a substantial investment in this endeavour, purchasing Intel's common stock to the tune of $5 billion. This purchase will give Nvidia around 4% or more of Intel after new shares are issued.
The US government has also shown its support for this venture, with President Donald Trump announcing a significant investment in Intel last month. The US government's investment was approximately 10% in Intel's common stock, amounting to $8.9 billion. This investment was part of the Trump administration's efforts to boost semiconductor manufacturing in the United States.
Lip-Bu Tan, the CEO of Intel, has been at the helm since March 2025. Tan has introduced direct, hands-on leadership, personally reviewing major chip designs to improve Intel's performance and turnaround after significant financial losses.
The announcement of this joint development boosted Nvidia's (NVDA) shares in premarket trading. However, the gains were later pared down. This collaboration is expected to strengthen the US's lead in the AI arms race against China.
CNN's Clare Duffy and Lisa Eadicicco contributed reporting to this article.
