Nvidia announced a $5 billion investment in Intel to boost AI and personal computing, sending Intel shares up nearly 24% at market open.
The move marks a bold partnership as Intel struggles to keep pace with rivals. The partnership goes beyond funding, with Nvidia and Intel set to co-develop products for data centers and PCs. Intel will manufacture Nvidia-custom x86 CPUs and build systems for its chiplets, while Nvidia integrates them into AI platforms. CEO Jensen Huang said the collaboration ushers in “the next era of computing.”
The partnership comes as Intel struggles with layoffs and setbacks in AI chips, where Nvidia dominates. Recent lifelines include a $2 billion SoftBank investment and a 10% stake from the Trump administration to aid its turnaround.
Critics calling the Trump administration’s 10% non-voting stake in Intel “socialism” miss the mark — it’s an investment, not state control of production. The real concern is the government prioritizing profit over national interest. A sovereign wealth-style approach should back capital-heavy projects that private investors avoid, even at the risk of failure, to strengthen supply chains and national resilience.
Markets reacted sharply, with Intel shares jumping 24% and Nvidia’s stock also rising. Nvidia bought Intel shares at a discount, signaling a long-term strategic partnership rather than a short-term play.
Analysts see the deal as a win-win: Nvidia gains Intel’s manufacturing power to expand in AI and PCs, while Intel secures capital and a confidence boost that could speed its recovery and innovation.
Excited to team up with my good friend Jensen to jointly develop multiple generations of custom data center and PC products!
Our collaboration brings together the best of @Intel and @nvidia to benefit customers – and shows how vital x86 architecture and NVLink will be in… pic.twitter.com/lnEtmJW73A
— Lip-Bu Tan (@LipBuTan1) September 18, 2025
