Nvidia-Intel Strike Historic $5 Billion Deal to Build Next-Gen AI Infrastructure

On Thursday, the largest chip manufacturer in the world, Nvidia, announced that it will invest $5 billion in Intel. This investment will be made by purchasing Intel's common stock at $23.28 per share. However, regulatory approval will be required to finalize the deal.

The two companies will work together on custom data centers and PC products. These data centers will form the basis of an artificial intelligence infrastructure. Nvidia says this collaboration will strengthen both companies' ecosystems and provide a new direction for next-generation computing.

Nvidia CEO Jensen Huang said, "This historic partnership combines Nvidia's AI and accelerated computing stack with Intel's CPUs and x86 ecosystem. Together, we will break new ground in technology."

Once the leader in PC processors, Intel fell behind in the mobile computing race after the launch of the iPhone. The rapid expansion of AI in recent years has made Nvidia the world's most valuable company, while Intel has struggled. This investment from Nvidia could prove to be a major relief and a new boost for Intel. Immediately following the announcement, Intel shares jumped 30% in pre-market trading, while Nvidia shares gained 3%.