Nvidia Bets Big on Intel With $5B Investment

Core Insights - Nvidia is investing $5 billion in Intel to jointly develop chips and data centers, marking a significant collaboration between the two companies [2][4] - Nvidia will purchase Intel common stock at $23.28 per share, approximately 7% below Intel's previous closing price, leading to a 28% surge in Intel's shares during premarket trading [2][4] - The partnership aims to integrate Nvidia's AI infrastructure with Intel's data center capabilities, with Nvidia's CEO describing it as a "historic collaboration" [3] Company Developments - Intel will construct data centers that Nvidia will incorporate into its AI infrastructure platforms, alongside developing chips that will integrate Nvidia's RTX GPU chiplets [3] - Nvidia's investment and collaboration are seen as a strategic move to enhance both companies' positions in the competitive chip market, especially as Intel seeks to regain its status as a leading chipmaker [3] - The Trump administration is supporting Intel's efforts to become a national champion in AI chip production, having announced a 10% stake in the company last month [3]