Nvidia Invests in Intel

Nvidia is set to invest $5 billion in Intel, acquiring shares at $23.28 apiece. This investment accompanies a strategic partnership where the companies will co-develop chips for PCs and data centres. Intel will design custom x86 processors for Nvidia's data centre platforms and create system-on-chips for PCs integrating Nvidia RTX GPU chiplets.

The partnership also incorporates Nvidia's NVLink interconnect technology to improve bandwidth and reduce latency between Intel CPUs and Nvidia GPUs. This collaboration aims to fuse Nvidia's AI and accelerated computing with Intel's CPUs.

For Intel, this deal provides financial strength and renewed credibility, while Nvidia enhances its control over the computing stack, particularly in AI infrastructure. Intel's stock surged, while Nvidia's shares experienced a more modest increase.