Nvidia to Invest $5 Billion in Struggling Rival Intel
The world’s leading chipset manufacturer Nvidia announced on Thursday that it has invested 5 billion dollars in Intel and that it will cooperate with the fighting semiconductor company.
Nvidia said Intel Common Stock’s purchase of shares for $ 23,28 would spend $ 5 billion. The investment, which is subject to regulatory approvals, comes one month after the US government receives 10% shares of Intel.
Jensen Huang, NVIDIA CEO, called Intel’s traditional computer chips known as CPU, which combines the power of most laptops strengthening the laptops.
“This partnership is the acceptance that information has changed on a fundamental,” he said to journalists on Thursday. “Accelerated and AI calculation period has arrived.”
Intel shares have increased by 23%, which has been the largest daily percentage earnings since 1987. Nvidia added more than 3%.
For data centers, Intel will make special chips that NVIDIA will use on AI infrastructure platforms. For personal computer products, Intel will create chips that integrate NVIDIA technology.
The agreement provides a life line for Intel, the pioneer of a Silicon Valley, which has a decimal of the processors of a personal computer explosion, but fell into a collapse after missing the transition of the iPhone to the mobile information process, which was released at the first exit of the iPhone.
Intel, Nvidia, the world’s most valuable company in the middle of the explosion in the middle of the explosion in recent years has remained even more. Intel lost about 19 billion dollars last year and $ 3.7 billion in the first six months of this year, and waiting to reduce its labor force to a quarter by the end of 2025.
The US government took a step to obtain 10% of shares last month-433.3 million stocks, which did not vote, became one of the biggest shareholders of $ 20.47. Federal officials, US technology and domestic production to support Intel said they have invested. The total value of the US government’s shares in Intel is $ 13.2 billion with an increase of $ 2.5 billion, as the NVIDIA investment stops before it was announced.
Huang said that Nvidia had been meeting with Intel for about a year. Intel CEO Lip-Bu Tan, who participated in the press call with Huang on Thursday, said that he had been talking to Nvidia since he was elected as the new leader of Intel in March.
“This is a very big, important milestone, Tan Tan said. “I call it an opportunity that changes the game we can work with.”
Wedbush Securities Analyst Daniel Ives said in a customer note that the agreement was “Taurus for the United States”.
Ives said that he brought Intel to the “front and center AI game ve and when he was combined with the US government’s share,” Gold for Intel for years after years of pain and disappointment for investors “.
Meanwhile, Nvidia rose to the AI explosion of its special chips. Chips known as graphic processing units or GPUs are very effective in developing powerful AI systems.
The agreement between the two chipsets comes as it continues to be less dependent on China’s US semiconductor technology. This week, Chinese officials reportedly banned several major domestic technology companies from purchasing Nvidia chips, and Chinese -based Huawei announced that they expanded AI chips and production development.
Nvidia and Intel, both in Central Santa Clara, California, will work together to develop new chips, but a production agreement has not yet been made between the two. Nvidia’s potential access to Intel’s Chip Foundries is a risk for the Taiwan Semiconductor production company, which is currently producing flagship processors of the technology giant. On Thursday, Huang stressed that both the company and Intel remained as “very successful customers ın of TSMC.
Huang said that Nvidia’s own Intel shares said, “The Trump administration never participated in this partnership, but“ of course it would be very supportive ”.
Huang participates in the activities with the president in the UK and the other Silicon Valley Bigwigs during a visit to Trump’s trip to the country.
On Thursday, British Prime Minister Keir Starmer and Trump, AI, “seized the world” at the signing ceremony for an Atlantic trans -technology partnership on Thursday.
Orum I’m looking at you. You take over the world, Jensen, Tr Trump said.
Huang and Trump also participated in a royal feast and encouraged Tech Mogul to find the Intel CEO for Windsor Castle event in seconds before the press event.
“Cognac was perfect, but it wasn’t enough, Hu Huang said Tan. “I think Konyak was coming from 1912.”
