Nvidia invests $5 billion in Intel, strengthening strategic alliance

Nvidia has announced a $5 billion investment in Intel, aimed at supporting the struggling US chipmaker, just weeks after the White House arranged a special deal for the US government to take a major stake in the company.

It's an investment between the world's most valuable company, at the center of the AI boom, and a chipmaker that has fallen behind many rivals.

The deal does not include Nvidia’s top-of-the-line GPUs, which are sought after in data centers for training AI models. The chip designer still partners with TSMC and other companies for those products.

The investment immediately makes Nvidia one of Intel's largest shareholders, holding around 4% or more after issuing additional shares to complete the deal.

The backing opens up new opportunities for Intel after years of unsuccessful restructuring, and sent the company's stock price soaring 30% in pre-market trading.

The new partnership with Nvidia is another step forward for Intel on its journey to recovery.

Intel’s manufacturing business continues to lose money, leaving the company facing a loss of nearly $3 billion in the second quarter. In addition to the Nvidia deal, Intel also received a $2 billion investment from SoftBank Group last month.

Nvidia, a key chip supplier for the global artificial intelligence (AI) boom, said it will pay $23.28 for each common share of Intel.

This price is slightly lower than the $24.90/share closing price on September 17 but still higher than the $20.47/share that the US government paid to own a 10% stake in Intel last month.

Market analyst Chris Beauchamp at IG Group (London) commented that Nvidia's purchase of Intel shares shows that the company is aiming to diversify its investment portfolio in the US, while also building goodwill with the government.

Nvidia CEO Jensen Huang emphasized that this historic collaboration will connect Nvidia's AI and accelerated computing ecosystem with Intel's vast CPU and x86 ecosystem. Together, the two parties will expand the ecosystem and lay the foundation for the next era of computing.

In early August 2025, President Donald Trump called for Intel CEO Lip-Bu Tan to be fired because of his suspected ties to China. But after a conversation with Mr. Tan at the White House on August 11, President Trump said he had changed his mind, becoming a supporter and seeing an opportunity to expand the partnership.

On August 22, Mr. Trump announced that the US government had reached an agreement with Intel. Accordingly, the government will own 9.9% of Intel's shares (433 million shares).

This represents an investment of $8.9 billion in Intel, of which $5.7 billion was spent under the US CHIPS and Science Act, although it has not yet been paid. The remaining $3.2 billion was funded under the Secure Enclave program./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/nvidia-rot-5-ty-usd-vao-intel-cung-co-lien-minh-chien-luoc-post1062715.vnp