Nvidia Buys $5 Billion Stake in Intel, Strikes Chip Co‑Development Pact

Overview

• Nvidia will purchase Intel common stock at $23.28 per share in a deal expected to give it a stake of roughly 4% or more.
• The companies will co-develop multiple generations of chips for data centers and PCs, combining Intel CPUs with Nvidia GPUs and high-speed interconnect technology.
• Executives said the collaboration involves mutual chip supply with no licensing component, and they declined to provide a product launch schedule.
• The agreement explicitly excludes a contract-manufacturing arrangement for Nvidia chips, leaving Nvidia’s foundry sourcing unchanged for now.
• Markets reacted sharply as Intel shares jumped roughly 20%–32% premarket, Nvidia rose about 3%, and rivals AMD and TSMC fell.