Nvidia will invest $5 billion in its competitor Intel to further intertwine Nvidia’s AI-boosting chips and Intel’s x86 architecture and CPUs. The companies will work together on several generations of data center and PC infrastructure, both companies announced on Thursday.

"Having Jensen's blessing is priceless," wrote Bernstein senior analyst Stacy Rasgon about Nvidia's $5 billion investment in Intel.

Intel also desperately needs capital to fund its foundry business, and the other part of the deal with Nvidia provides just that. Nvidia will invest $5 billion in Intel, buying shares at $23.28 a pop. Intel didn't disclose the planned use of this capital injection, but the company certainly needs cash to scale up its latest process nodes.

Nvidia’s $5 billion deal solves four problems for Intel, but it doesn’t address the company’s biggest issue: manufacturing technology.

MT. PLEASANT, Wis. - Back in May of 2024, after President Biden spoke in Mt. Pleasant praising a planned Microsoft artificial intelligence data center,

Nvidia's multibillion-dollar commitment to Intel should be viewed as a major vote of confidence for the legacy chip business.

Intel and Nvidia announce a huge partnership to jointly develop multiple generations of consumer CPU and data center products. Nvidia is also investing $5 billion in Intel.

Stock markets advanced Thursday as tech shares jumped after AI-chips giant Nvidia announced a $5 billion investment in struggling US rival Intel and the Federal Reserve cut interest rates.