Nvidia invests $5B US in stake and chip partnership with Intel (www.cbc.ca)

Nvidia will invest $5 billion in Intel for roughly a 4% stake and a chip-design partnership, making it one of Intel’s largest shareholders just weeks after the U.S. government took a 10% stake. Nvidia will pay $23.28 per share (vs. the U.S. government’s $20.47), and Intel shares jumped ~30% on the news. The deal signals a political and commercial vote of confidence in Intel amid its turnaround, while aligning Nvidia more closely with U.S. policy as it navigates export tensions with China. Technically, the pact will see Intel design custom x86 data‑center CPUs that Nvidia will package with its GPUs, using an exclusive Nvidia interconnect to enable higher‑speed chip‑to‑chip links—critical for scaling AI systems where many chips must act as one. Crucially, Intel’s foundry will not manufacture Nvidia chips, leaving open questions about Intel’s foundry viability (which analysts say needs a major customer). The arrangement could let Intel participate in Nvidia-powered AI servers, challenge TSMC’s role as Nvidia’s manufacturer, and intensify competition with AMD and Broadcom. Nvidia describes “multiple generations” of joint products, while the financial hit to Nvidia is modest but the strategic and regulatory upside may be significant.