Nvidia-Intel pact: Nvidia to invest $5 billion in Intel; firms to co-develop AI infrastructure and PCs – The Times of India

Nvidia on Thursday said that it will invest $5 billion in Intel and partner with the struggling chipmaker to build artificial intelligence infrastructure and personal computer products, in what the companies called a “historic collaboration.”As part of the agreement, Nvidia will buy Intel common stock at $23.28 a share, subject to regulatory approvals, AP reported. The tie-up will see Intel design custom processors for Nvidia’s data centre platforms, while also integrating Nvidia technology into PC chips.“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 move offers a significant boost for Intel, which has struggled to recover after falling behind in the mobile and AI eras. Once dominant in personal computing, the company posted a $19 billion loss last year and another $3.7 billion loss in the first half of this year. Intel also expects to cut a quarter of its workforce by end-2025.Nvidia, meanwhile, has surged to become the world’s most valuable chipmaker as demand for its graphics processing units (GPUs) drives the global AI boom.News of the deal sparked a sharp market reaction, with Intel shares jumping 30% in premarket trading and Nvidia shares up 3%.