In a deal that follows Donald Trump’s administration’s surprise purchase of a 10 percent government stake in the Silicon Valley giant, Nvidia will pour $5 billion into Intel and work with the struggling US chipmaker on artificial intelligence datacenter products and PC chips.
Nvidia will pour $5 billion into Intel and work with the struggling US chipmaker on artificial intelligence datacenter products and PC chips, in a deal that follows Donald Trump’s administration’s surprise purchase of a 10 percent government stake in the Silicon Valley giant.
The investment, announced Thursday (18.09.25), marks the most significant collaboration yet between Nvidia, the world’s most valuable semiconductor company, and Intel, which has been fighting to regain ground after years of losses and missed opportunities.
A month ago, the White House confirmed its unprecedented intervention in Intel, with U.S. president Trump declaring it a “strategic imperative” to secure America’s chip supply chain.
Nvidia chief executive Jensen Huang said in a statement: ‘‘This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem – a fusion of two world-class platforms.
“Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
Nvidia said it would buy $5 billion worth of Intel common stock at $23.28 a share, subject to regulatory approval.
After markets closed, Intel’s shares surged nearly 23 percent – their biggest one-day jump since 1987 – while Nvidia rose more than 3 percent, boosting its market value to $4tn.
Under the agreement, Intel will design custom chips for Nvidia’s AI infrastructure platforms, while also integrating Nvidia technology into its personal computer products. Both firms said they aimed to “seamlessly connect” their architectures.
For Intel, the partnership offers a much-needed lifeline.
Once the industry’s pioneer, the company dominated the personal computer boom but stumbled after missing the mobile revolution triggered by Apple’s iPhone in 2007.
It has since fallen further behind amid the rapid rise of AI – an area where Nvidia’s highly specialized graphics processing units, or GPUs, have become the global standard.
Intel reported nearly $19 billion in losses last year and another $3.7 billion in the first half of 2024, warning it would cut about a quarter of its workforce by the end of 2025.
By contrast, Nvidia has soared on demand for GPUs powering everything from chatbots to supercomputers.
The investment makes Nvidia the second major backer to prop up Intel in recent months.
In August, Japanese tech giant SoftBank pledged $2 billion for a 2 percent stake, after reports first surfaced that Washington was considering direct intervention.
That government stake materialized last month, when Trump, 79, confirmed the administration had bought 10 percent of Intel to “protect America’s future in AI and national defence”.
Trump has previously threatened 100 percent tariffs on imported chips and pushed export deals with Nvidia and competitor AMD that allowed sales of scaled-down AI processors to China – on the condition 15 percent of revenues were returned to the US Treasury.
Industry analysts said Nvidia’s move underlined its dominance.
Dan Ives, a tech analyst at Wedbush, said: “With AI infrastructure investments continuing to grow, the chip landscape remains Nvidia’s world, with everybody else paying rent, as more sovereigns and enterprises wait in line for the most advanced chips in the world.”
Nvidia will pour $5 billion into Intel afterTrump administration’s purchase of 10 percent government stake in firm
