Nvidia is betting big on Intel. The AI giant has snapped up a $5 billion stake in the struggling chipmaker — and they’re not stopping there.
The two rivals-turned-partners are joining forces to build new generations of CPUs and GPUs for data centers and PCs, a deal that could reset the balance of power in the semiconductor industry.
Key Takeaways
- Nvidia to acquire $5B Intel stake at slight share-price discount
- Partnership targets AI data center CPUs and PC “x86 RTX SoCs”
- Intel stock jumped 30% in early Thursday trading after deal news
- Collaboration could challenge AMD and shift global chip dynamics
Nvidia is buying a $5 billion stake in Intel, making it one of the chipmaker’s largest shareholders. The companies will co-develop custom CPUs and “x86 RTX SoCs,” integrating Nvidia GPUs into Intel chips. The collaboration aims to boost AI data center infrastructure and consumer PCs, reshaping the semiconductor race.
Nvidia Buys Into Intel for $5B
Nvidia has agreed to purchase a $5 billion stake in Intel, acquiring shares at $23.28 each — a slight discount on Intel’s trading price. The move will make Nvidia one of Intel’s top shareholders with about 4% ownership (Reuters, 2025).
The announcement triggered a sharp market reaction, with Intel shares surging nearly 30% in early Thursday trading. For Nvidia, the deal adds strategic weight as the company continues its reign as the world’s most valuable semiconductor firm.
The Partnership: CPUs Meet GPUs
The companies plan to integrate their architectures via Nvidia’s NVLink, a high-speed interconnect that allows CPUs and GPUs to share data more efficiently than traditional PCIe. This is critical for AI workloads, which often require hundreds of GPUs working together.
Intel will design custom x86 CPUs tailored for Nvidia’s AI platforms, targeting enterprise and hyperscale data centers. On the consumer side, Intel will produce system-on-chips that combine x86 processors with chiplets of Nvidia’s RTX GPUs. These “x86 RTX SoCs” could power a new generation of PCs optimized for AI-driven applications and graphics.
Industry Response: Intel’s Bid to Reclaim Ground
Intel has struggled to keep pace in the AI era. While Nvidia rode the AI boom to record profits, Intel cut jobs, halted projects, and sought financial discipline under its new leadership. Partnering with Nvidia gives Intel a chance to reassert relevance in both data centers and PCs — two markets where AMD has steadily gained ground.
Analysts say the deal could represent Intel’s most ambitious turnaround move in years. “This is Intel admitting that it can’t afford to miss the AI wave again,” one industry analyst told Reuters.
Market Reaction and Investor Signals
Intel’s share price jump underscored investor enthusiasm. A 30% rally in a single morning is a strong signal that the market sees Nvidia’s involvement as more than just symbolic. Nvidia, meanwhile, has little to lose: its $5 billion outlay is small compared with its cash reserves and market cap.
Why It Matters
The partnership could shake up the chip wars globally. AMD has carved out market share with its Ryzen and EPYC lines, but the Nvidia-Intel alliance could present a formidable counterweight.
For consumers, the arrival of “x86 RTX SoCs” suggests PCs with built-in Nvidia graphics and AI acceleration — potentially redefining mainstream performance expectations. For data center operators, custom x86 CPUs designed for Nvidia’s platforms could accelerate cloud and AI workloads, boosting efficiency and reducing bottlenecks.
What Happens Next
The collaboration is set to roll out across “multiple generations” of products, though timelines remain under wraps. Both companies framed the deal as a multi-year commitment to co-engineering.
Intel CEO Lip-Bu Tan said in a statement: “Intel’s platforms, combined with our advanced manufacturing and packaging capabilities, will complement Nvidia’s AI leadership to enable new breakthroughs for the industry.”
The bottom line: Nvidia is now not just a competitor, but also a partner — and potentially Intel’s lifeline in the AI era.
Conclusion
Nvidia’s $5 billion bet on Intel isn’t just a financial investment — it’s a strategic pivot that could redraw battle lines in the AI and PC markets.