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4w ago

Nvidia Buys $5 Billion Intel Stake and Strikes Chip Co-Design Pact

The deal links Nvidia’s AI platforms with custom Intel x86 chips and keeps GPU production outside Intel for now, reflecting a push to secure compute capacity as AI buildouts accelerate in the U.K. and beyond.

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Wayve’s autonomous passenger car negotiates the London traffic

Overview

  • Nvidia is purchasing Intel shares at $23.28 each for roughly a 4% stake, following recent funding Intel received from the U.S. government (~10% stake) and a $2 billion SoftBank investment.
  • Intel shares jumped about 23% on the announcement, their biggest one-day rally in decades, while Nvidia shares also gained.
  • The companies will co-develop multiple generations of products: custom Intel x86 CPUs for Nvidia’s AI infrastructure and Intel x86 PC SoCs integrating Nvidia RTX GPU chiplets, with faster CPU‑GPU links via Nvidia technology such as NVLink.
  • The pact does not move Nvidia GPU manufacturing to Intel’s foundry; Intel will supply CPUs and advanced packaging as Nvidia continues evaluating Intel’s process technology, leaving TSMC as Nvidia’s key chip producer for now.
  • In parallel U.K. moves, Microsoft pledged $30 billion through 2028 for cloud and AI, Nvidia committed £11 billion to deploy 120,000 Blackwell Ultra GPUs with Nscale and CoreWeave and to launch Stargate U.K., and Nvidia announced a separate £2 billion fund for U.K. AI start-ups with leading venture partners.