🔴 Website 👉 https://u-s-news.com/
Telegram 👉 https://t.me/usnewscom_channel
Nvidia on Thursday announced plans to invest $5 billion in Intel – following up the White House’s massive stake in the company as the flailing chipmaker attempts a turnaround.
Under the partnership, the two companies will co-develop data center and PC chips, and Nvidia will become one of Intel’s largest shareholders with roughly 4% of the company.
Nvidia is investing its stake at a price of $23.28 a share, according to a press release. News of the deal sent shares in Intel soaring 23% to about $30.57 a share on Thursday.
“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms,” Nvidia CEO Jensen Huang said in a statement.
The massive deal piled onto support from the US government, which over the summer struck a deal to take a 10% in the struggling software firm.
White House deputy press secretary Kush Desai on Thursday called the new Nvidia partnership a “major milestone for American high-tech manufacturing.”
The Trump administration was not involved in Intel’s deal with Nvidia, a senior White House official told The Post.
Intel – a onetime Silicon Valley darling – ousted CEO Pat Gelsinger and replaced him with Lip-Bu Tan in March in hopes the new chief executive could turn around the company’s dismal earnings.
But Tan faced backlash over his alleged ties to China and accusations of posing a national security threat. The CEO was quickly flown out to meet with President Trump, which ended with the unusual deal for Intel to give the US government a stake in the company.
The new deal with Nvidia – which is subject to regulatory approval – does not involve Intel’s contract manufacturing business, also known as a foundry, making chips for Nvidia.
Analysts have warned that Intel will need to lock down a major customer, like Nvidia, Apple, Qualcomm or Broadcom, for this business to survive.
But the deal with Nvidia does add to Intel’s growing reserve of capital, after clinching a $2 billion investment from Masayoshi Son’s SoftBank and $5.7 billion from the US government.
The financial terms of the collaboration are unknown, but the companies said they would make “multiple generations” of future products.
Nvidia and Intel officials described the collaboration as a commercial arrangement under which they will provide chips to one another to create products, with no licensing component.
Intel will design custom data center central processors Nvidia plans to package with its AI chips, known as GPUs. A proprietary Nvidia technology will let the Intel and Nvidia chips communicate at higher speeds than before.
The combined Nvidia-Intel chips could provide a major competitive challenge to AMD, which is developing its own AI servers, and Broadcom, which also has chip-to-chip connection technology and does business with major companies like Google.
With Post wires