Nvidia Invests $5 B in Intel, Launches Joint AI Chip Collaboration
Key Points
- Nvidia commits $5 billion to Intel as an equity investment.
- The companies will link Intel CPUs with Nvidia AI technology via NVLink.
- Goal to create integrated system‑on‑chip solutions for data centers and laptops.
- Deal projected to unlock $25 billion‑$50 billion in annual opportunity.
- U.S. government recently took a roughly 10 percent stake in Intel under the CHIPS Act.
- Partnership developed independently of any administration, according to Nvidia.
- Future use of Intel’s Foundry Services remains under review.
- Collaboration aims to capture a larger share of the 150 million laptops sold annually.
Nvidia announced a $5 billion equity investment in Intel, pairing the cash injection with a product collaboration that links Nvidia's AI and accelerated‑computing technology to Intel's leading CPUs via NVLink. The partnership aims to create integrated systems‑on‑chip for data‑center and personal‑device markets, including new laptop designs that fuse GPUs and CPUs. The deal arrives as the U.S. government has taken a roughly 10 percent stake in Intel under the CHIPS Act, and it underscores a broader push to strengthen American semiconductor capabilities.
Background and Deal Overview
Nvidia, valued at $4.3 trillion, confirmed a $5 billion equity investment in Intel, the struggling U.S. chipmaker. The two companies also announced a product collaboration that will connect Intel's CPUs and the broader x86 ecosystem with Nvidia's AI and accelerated‑computing capabilities using NVLink technology. Nvidia CEO Jensen Huang and Intel CEO Lip‑Bu Tan highlighted the partnership as a means to develop custom data‑center and PC chips, as well as a system‑on‑chip that merges GPU and CPU functions for next‑generation laptops.
Strategic Implications
The collaboration is expected to enable Nvidia to scale rack‑architectures that combine up to 72 GPUs with custom CPUs, opening a larger slice of the personal‑device market. Huang noted that there are roughly 150 million laptops sold each year, and the new integrated chips could create a “new class of integrated laptops” not previously seen. The deal represents an estimated $25 billion to $50 billion of annual opportunity, according to Huang.
Government Context
The investment follows a recent U.S. government move that converted CHIPS Act grants into an approximately 10 percent equity stake in Intel. While the government is also reevaluating export controls that have limited Nvidia’s ability to sell advanced GPUs to China, it has indicated a willingness to grant export licenses if companies share a portion of proceeds with the government. Huang emphasized that the partnership was developed independently of any administration, stating that the Trump administration had no involvement.
Future Outlook
Both executives indicated that the collaboration is initially product‑focused, with potential future use of Intel’s Foundry Services still under consideration. Intel will continue its progress on advanced chip manufacturing, while Nvidia maintains its relationship with TSMC for current production. The partnership is positioned to strengthen Intel’s balance sheet and expand Nvidia’s reach into new device categories, signaling a significant step toward deeper integration of AI capabilities across the semiconductor ecosystem.