Nvidia CEO explains why he's making a $5 billion bet on struggling chip giant Intel (www.businessinsider.com)

Nvidia announced a $5 billion equity investment in Intel and a strategic partnership that will see Intel integrate Nvidia GPUs into upcoming “AI PCs” while Nvidia plans to use Intel x86 CPUs more extensively in its data centers. The move, framed by Nvidia CEO Jensen Huang as a strong endorsement of Intel’s turnaround under CEO Lip-Bu Tan, sent Intel shares sharply higher and brings roughly $16 billion in cash to Intel when combined with other recent deals. Bernstein estimates Nvidia will own about 4% of Intel, and analysts say Huang’s backing is a major signal of confidence to the market. Technically, the pact aligns Nvidia’s AI accelerators with Intel’s CPU roadmap for PC and server ecosystems—potentially shifting PC AI architectures away from AMD/ARM CPU combinations and giving Nvidia earlier influence over CPU integration and system-level designs. The announcement explicitly did not make Nvidia an Intel foundry customer; analysts warn the $5 billion won’t fix Intel’s scale and execution challenges in foundry manufacturing, so material changes to chip supply chains could take years. Politically, the deal also bolsters Nvidia’s alignment with U.S. industrial policy amid recent government involvement in Intel, which may ease scrutiny around Nvidia’s China exposure.