Nvidia has announced a $5 billion investment in Intel, making it one of the largest shareholders in the U.S. chipmaker, as part of a broader agreement to jointly develop AI infrastructure and advanced chipsets for personal computers. The move comes at a crucial juncture for Intel, which has faced challenges in keeping pace with the accelerating AI race and has seen its market value decline significantly in recent years.
In a newsroom post, Nvidia confirmed that it will acquire Intel’s common stock at a price of $23.28 per share, amounting to roughly ₹44,100 crore. However, the company noted that the transaction is not yet finalized and remains subject to regulatory approvals and customary market conditions.
Calling the partnership a landmark step, Nvidia Founder and CEO Jensen Huang said, “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. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Under the deal, both companies will integrate their respective technologies using NVLink, enabling Intel’s x86 ecosystem to work seamlessly with Nvidia’s RTX ecosystem. This integration is expected to deliver more powerful platforms for both consumer and enterprise applications. On the AI front, Intel will design custom x86 CPUs tailored for Nvidia’s AI platforms and customer base. Additionally, the two companies will collaborate to develop x86 system-on-chips (SoCs) that incorporate RTX GPUs, aimed at powering the next generation of personal computers.
Despite the sweeping scope of the collaboration, a Reuters report clarified that the deal does not include Intel’s foundry operations, which manufacture chips for external clients. The foundry business has been one of Intel’s biggest financial burdens, and industry analysts suggest its long-term viability could hinge on securing a major customer to stabilize revenues.
By combining Intel’s CPU expertise with Nvidia’s dominance in AI and GPU technology, the partnership aims to create a robust platform for the next wave of computing innovation. For Intel, the deal also represents a chance to reassert relevance in a highly competitive market, while Nvidia deepens its footprint in both consumer PCs and enterprise AI infrastructure.
