NVIDIA invests USD 5 billion in Intel, gaining a significant equity stake
Why does a chipmaker best known for graphics cards suddenly pour billions into a rival’s balance sheet? It’s a move that signals more than cash on a ledger; it hints at a shifting playbook for data‑center power. While NVIDIA has spent the past decade courting AI workloads with its own silicon, the company now backs a $5 billion purchase of common stock in Intel, securing a sizable equity position in a firm it once out‑competed.
The deal isn’t just financial muscle—it obliges Intel to engineer custom x86 processors tailored for NVIDIA’s sprawling server farms, and to keep churning out the broader x86 system portfolio. Here’s the thing: the partnership blurs the line between competitor and collaborator, raising questions about supply‑chain resilience and design independence. The partnership signals a pragmatic response to the relentless demand for compute, but it also leaves industry watchers wondering how deep the integration will run.
**Intel**
Intel NVIDIA made a major move by investing $5 billion in Intel through the purchase of common stock, giving it a significant equity stake in one of its longtime competitors. Under the agreement, Intel will develop custom x86 CPUs for NVIDIA to use in its data centres, while also producing x86 system-on-chips that integrate NVIDIA RTX GPU chiplets for next-generation personal computers. Nokia NVIDIA announced a $1 billion investment in Nokia in October to support the development of AI-driven 5G and 6G networks, fuelling the chipmaker's expansion into AI-focused telecom infrastructure.
NVIDIA's $5 billion purchase of Intel stock marks a notable shift in the rivalry between two chip giants. By taking a sizable equity position, NVIDIA secures a pipeline for custom x86 CPUs that Intel will design specifically for its data‑centre workloads, while Intel continues to produce its standard x86 systems. The deal, announced amid NVIDIA’s record‑setting 2025, follows a year in which the company hit a $5‑trillion market cap and spread billions across more than fifty startups and established players.
Its portfolio now touches AI research, cloud infrastructure, autonomous platforms, scientific computing and even fusion‑energy projects. Yet, whether the custom silicon will deliver measurable performance gains for NVIDIA’s AI workloads remains uncertain. Outcomes remain unclear.
Likewise, the strategic benefit of holding a stake in a direct competitor is still being evaluated by analysts. The partnership could tighten supply chains, but it also raises questions about how the two firms will navigate overlapping product lines. As the investment environment evolves, the true impact of this $5 billion infusion will likely unfold over the coming quarters.
Further Reading
- Nvidia invests $5 billion in Intel, aims to codevelop for data centers, PCs - Constellation Research
- Nvidia to invest $5 billion in Intel and co-develop chips - Axios
- How NVIDIA will benefit from its $5 billion Intel investment - Trellis
- NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products - NVIDIA Newsroom
More in Business & Startups
Enterprise AI pilots lag; workflow redesign needed for gains, McKinsey says
Most companies that have rushed to test AI‑driven coding assistants are seeing results that fall...
OpenAI builds Sora Android app in 28 days with Codex assistance
In just under a month, OpenAI turned a fresh concept into a functional Android app for Sora, a move...
Runway launches General World Model with three versions and Gen‑4.5 upgrades
Runway just dropped a new AI suite that promises more than a single‑purpose generator.
Disney sues Google over AI “virtual vending machine” after USD 1 bn OpenAI deal
Disney has filed a lawsuit against Google, accusing the tech giant of using its...
Broadcom discloses USD 21 B Anthropic order for Google’s 7th‑gen TPUs
Broadcom’s latest filing reveals a $21 billion purchase from Anthropic, the AI startup that has...
Common Questions Answered
How much did NVIDIA invest in Intel and what form did the investment take?
NVIDIA invested $5 billion in Intel by purchasing common stock, giving it a sizable equity stake in the rival. This equity purchase provides NVIDIA with ownership interest and influence over Intel’s future collaborations.
What custom hardware will Intel develop for NVIDIA as part of the agreement?
Under the deal, Intel will design custom x86 CPUs specifically optimized for NVIDIA’s data‑centre workloads, ensuring tighter integration with NVIDIA’s AI and GPU technologies. These processors are intended to boost performance and efficiency in large‑scale AI training and inference tasks.
How will Intel’s system‑on‑chip products incorporate NVIDIA technology?
Intel will produce x86 system‑on‑chip (SoC) products that embed NVIDIA RTX GPU chiplets, targeting next‑generation personal computers. This integration aims to combine Intel’s CPU expertise with NVIDIA’s advanced graphics and ray‑tracing capabilities in a single package.
What broader strategic shift does NVIDIA’s $5 billion Intel investment indicate?
The investment signals a shift from pure competition to strategic partnership, allowing NVIDIA to secure a reliable supply of custom CPUs while giving Intel a foothold in AI‑driven markets. It also reflects NVIDIA’s broader approach of using its record‑setting market cap to invest in key ecosystem players.