{"id":5328,"date":"2025-09-19T06:49:11","date_gmt":"2025-09-19T06:49:11","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=5328"},"modified":"2025-09-19T06:49:11","modified_gmt":"2025-09-19T06:49:11","slug":"nvidia-invests-5-billion-in-intel-pairing-chip-expertise-to-revive-struggling-rival","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/nvidia-invests-5-billion-in-intel-pairing-chip-expertise-to-revive-struggling-rival\/","title":{"rendered":"Nvidia Invests $5 billion in Intel, Pairing Chip Expertise to Revive Struggling Rival"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Nvidia announced Thursday it will pour $5 billion into Intel, delivering a major vote of confidence to the struggling chipmaker.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The move comes only weeks after the White House arranged for the federal government to take a 10% stake in Intel\u2014an extraordinary step to stabilize the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The investment immediately boosted Intel\u2019s stock by 23%, making Nvidia one of Intel\u2019s largest shareholders with about 4% ownership once new shares are issued. Once the pride of Silicon Valley, Intel has struggled with repeated turnaround efforts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In March, the company appointed Lip-Bu Tan as CEO, but his leadership quickly drew criticism from the U.S. President Donald Trump, who raised concerns about Tan\u2019s links to China.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That controversy prompted an emergency meeting in Washington, leading to the government\u2019s unprecedented investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nvidia CEO Jensen Huang clarified that the <\/span><a href=\"https:\/\/prepsaret.com\/news\/trump-proposes-tariffs-on-semiconductor-imports-to-boost-u-s-manufacturing\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Trump administration<\/span><\/a><span style=\"font-weight: 400;\"> was not part of this new deal, though he believed officials would have supported it. Huang appeared with Trump during the president\u2019s visit to the United Kingdom on Thursday.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Joint Chip Development but Not Manufacturing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The partnership will see Intel and <\/span><a href=\"https:\/\/www.nvidia.com\/en-us\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Nvidia<\/span><\/a><span style=\"font-weight: 400;\"> collaborate on designing chips for PCs and data centers. However, the arrangement does not extend to Intel\u2019s foundry business producing chips for Nvidia.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, Intel will supply processors and advanced packaging for joint products. Huang noted Nvidia has been working with Intel for nearly a year and continues to assess its foundry capabilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analysts say Intel\u2019s foundry unit can only survive by securing a major client like Nvidia, Apple, Qualcomm, or <\/span><a href=\"https:\/\/prepsaret.com\/news\/openai-plans-first-ai-processor-launch-in-2026-in-collaboration-with-broadcom\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Broadcom<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis may be the first step of an acquisition or breakup of the company (Intel) among U.S. chip makers though it is entirely possible the company will remain a shadow of its former self but will survive,\u201d said Nancy Tengler, CEO of Laffer Tengler Investments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nvidia, whose chips are central to the AI boom, will pay $23.28 per Intel share\u2014below Wednesday\u2019s close of $24.90 but above the $20.47 paid by the U.S. government. Nvidia\u2019s shares rose 3.8% following the news.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The two companies declined to reveal full financial details but committed to building \u201cmultiple generations\u201d of new products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This comes on top of Intel\u2019s recent $2 billion boost from Softbank and $5.7 billion from Washington. Tan has pledged to slim operations and expand capacity only when demand requires.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis is a massive game-changer for Intel and effectively resets its position of AI-laggard into a cog in future AI infrastructure,\u201d said Gadjo Sevilla of eMarketer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The deal poses a competitive threat to TSMC, which currently makes Nvidia\u2019s flagship processors, and to AMD, which supplies chips to data centers.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.intel.com\/content\/www\/us\/en\/homepage.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Intel<\/span><\/a><span style=\"font-weight: 400;\"> will now design custom processors to work seamlessly with Nvidia\u2019s GPUs, enabling faster data transfers\u2014a critical edge in AI.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AMD stock dipped 1.3%, while Broadcom slipped 0.5%. The companies have not given a timeline for their first joint products.<\/span><\/p>\n<p><b>Read next:<\/b> <a href=\"https:\/\/prepsaret.com\/news\/meta-unveils-display-equipped-smart-glasses-in-bid-for-superintelligence\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Meta unveils display-equipped smart glasses in bid for \u2018superintelligence\u2019<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia announced Thursday it will pour $5 billion into Intel, delivering a major vote of confidence to the struggling chipmaker.\u00a0 The move comes only weeks after the White House arranged for the federal government to take a 10% stake in Intel\u2014an extraordinary step to stabilize the company. The investment immediately boosted Intel\u2019s stock by 23%, [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":5330,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[333],"tags":[],"class_list":["post-5328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nvidia Invests $5 billion in Intel, Pairing Chip Expertise to Revive Struggling Rival<\/title>\n<meta name=\"description\" content=\"Nvidia is injecting $5B into Intel, teaming up on chip innovation to give its struggling competitor a fresh chance at revival.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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