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.

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

Microsoft is finishing construction on its first Racine County data center, which is to be completed in early 2026. The company says it will hire more than 400 employees to work at the first data center and once the second data center is open, the total number of employees plans to be nearly 800 for both facilities.

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.