Overview

• Nvidia will buy about 215 million Intel shares at $23.28 each, taking roughly a 4% equity stake, pending customary approvals.
• The companies plan multiple generations of products: Intel will build custom x86 CPUs for Nvidia’s AI platforms, and x86 system-on-chips integrating Nvidia RTX GPU chiplets for PCs, linked using NVLink.
• Intel shares jumped roughly 24%–30% in early trading after the announcement, while Nvidia gained about 3%.
• Jensen Huang said Nvidia expects to become a very large customer of Intel CPUs and a supplier of GPU chiplets into Intel products.
• The announcement follows the U.S. government’s roughly 10% equity stake and SoftBank’s $2 billion investment in Intel; no manufacturing arrangement was disclosed.