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| Nvidia to invest $5bn in Intel after Trump administration’s 10% stake | |
| (about 1 hour later) | |
| Deal gives Intel a lifeline as firms team up on AI data centers and PC chips after Trump stake sparks market surge | Deal gives Intel a lifeline as firms team up on AI data centers and PC chips after Trump stake sparks market surge |
| Nvidia, the world’s leading chipmaker, announced plans to invest $5bn in Intel and collaborate with the struggling semiconductor company on products. | Nvidia, the world’s leading chipmaker, announced plans to invest $5bn in Intel and collaborate with the struggling semiconductor company on products. |
| One month after the Trump administration confirmed it had taken a 10% stake in Intel – the latest extraordinary intervention by the White House in corporate America – Nvidia said it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products. | One month after the Trump administration confirmed it had taken a 10% stake in Intel – the latest extraordinary intervention by the White House in corporate America – Nvidia said it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products. |
| Shares in Intel surged 29% during pre-market trading in New York. Nvidia rose almost 3%, bolstering its $4tn market value. | Shares in Intel surged 29% during pre-market trading in New York. Nvidia rose almost 3%, bolstering its $4tn market value. |
| Nvidia said it will spend $5bn to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. | Nvidia said it will spend $5bn to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals. |
| “This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem – a fusion of two world-class platforms,” Nvidia CEO Jensen Huang said. “Together, we will expand our ecosystems and lay the foundation for the next era of computing.” | “This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem – a fusion of two world-class platforms,” Nvidia CEO Jensen Huang said. “Together, we will expand our ecosystems and lay the foundation for the next era of computing.” |
| The two companies said they will work on “seamlessly connecting” their architectures. | The two companies said they will work on “seamlessly connecting” their architectures. |
| For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. | For data centers, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms. while for PCs products, Intel will build chips that integrate Nvidia technology. |
| The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut. | The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut. |
| Intel fell even farther behind in recent years amid the AI boom that’s propelled Nvidia into the world’s most valuable company. Intel lost nearly $19bn last year and another $3.7bn in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. | Intel fell even farther behind in recent years amid the AI boom that’s propelled Nvidia into the world’s most valuable company. Intel lost nearly $19bn last year and another $3.7bn in the first six months of this year, and expects to slash its workforce by a quarter by the end of 2025. |
| Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. | Nvidia, meanwhile, has soared because its specialized chips are underpinning the artificial intelligence boom. The chips, known as graphics processing units, or GPUs, are highly effective at developing powerful AI systems. |
| Dan Ives, tech analyst at Wedbush, said: “With AI infrastructure investments continuing to grow with the company expecting between $3tn to $4tn in total AI infrastructure spend by the end of the decade, the chip landscape remains [Nvidia’s] world, with everybody else paying rent, as more sovereigns and enterprises wait in line for the most advanced chips in the world.” | Dan Ives, tech analyst at Wedbush, said: “With AI infrastructure investments continuing to grow with the company expecting between $3tn to $4tn in total AI infrastructure spend by the end of the decade, the chip landscape remains [Nvidia’s] world, with everybody else paying rent, as more sovereigns and enterprises wait in line for the most advanced chips in the world.” |
| Associated Press contributed reporting | Associated Press contributed reporting |