‘I’d Like to Thank Jensen for the Confidence in Me,’ Lip-Bu Tan Marks 6 Months as Intel’s New CEO by Announcing a $50-Billion-a-Year Deal with Nvidia

Core Insights - Nvidia and Intel announced a surprising partnership involving a $5 billion investment from Nvidia into Intel, aimed at developing data center and PC products to initiate a new era of computing [1][3] - Nvidia's CEO Jensen Huang and Intel's new CEO Lip-Bu Tan expressed mutual confidence in the partnership, with Huang praising Tan's leadership capabilities [3][4] Company Performance - Nvidia's stock has surged by 1,272% over the past five years, while Intel's stock has declined by nearly 41% in the same period, highlighting the contrasting fortunes of the two companies [2] - The partnership is seen as a significant opportunity for Intel to stabilize and potentially turn its foundry business profitable [4] Strategic Goals - The collaboration aims to focus on custom CPUs, although converting Nvidia into an Intel foundry customer is not currently a priority [5] - The announcement coincided with the six-month anniversary of Tan's tenure as CEO, marking a pivotal moment for Intel under his leadership [3]