NVIDIA to invest $ 5 billion in Intel’s troubled competition
NVIDIA, the world’s leading company, announced on Thursday that it invests $ 5 billion in Intel and will cooperate with the semiconductor company.
NVIDIA said it will spend $ 5 billion to buy Intel Common shares at $ 23.28 per share. The investment, which is subject to organizational approvals, comes a month after the US government obtained a 10 % stake in Intel.
The CEO of Nvidia Jensen Huang described it as a “World -style global platform” that combines Intel’s power to make traditional computer chips, known as central processing units, those that run on laptops, with NVIDIA focus on specialized graphics chips that are essential for artificial intelligence.
“This partnership is a recognition that computing has changed mainly,” Huang told reporters on Thursday. “The era of accelerating computing and AI has arrived.”
Intel shares have jumped nearly 23 %, the largest percentage per day since 1987. NVIDIA shares have added more than 3 %.
For data centers, Intel will make custom chips that NVIDIA will use in Amnesty International’s infrastructure platforms. For personal computer products, Intel will build flakes that integrate NVIDIA technology.
The Intel Lifel Agreement, who was a leader in the Silicon Valley, has the growth contracts as its processors operated a personal computer mutation, but it fell into the recession after it lost the transformation to the era of the mobile computing that was launched by the first appearance of the iPhone 2007.
Intel fell further in recent years amid the boom of artificial intelligence that prompted NVIDIA to the world’s most valuable company. Intel lost nearly $ 19 billion in the past year and another $ 3.7 billion in the first six months of this year, and it is expected to reduce its power operating by the end of 2025.
The administration of US President Donald Trump intervened last month to secure a 10 %-433.3 million shares of non-sacred shares at a price of $ 20.47-which makes it one of the largest Intel shareholders. Federal officials said they had invested in Intel to enhance US technology and local manufacturing.
From NVIDIA’s Intel’s share, Huang said, “The Trump administration had no participation in this partnership at all,” although “it was very supportive, of course.”
On Thursday, INTEL price increased the total value of the US government’s share in Intel to $ 13.2 billion, an increase of $ 2.5 billion over the NVIDIA Declaration.
Huang said that Nafidia was in talks with Intel for about a year. Intel CEO, who joined the press with HUANG on Thursday, said he was talking to Nvidia since he won the title of new Intel leader in March.
“This is a very big and important teacher,” said Tan. “I call it an opportunity to change the game we can work together.”
Daniel Evz, a playbush secretities analyst, said the deal is “up to technology.”
Evis said that he brings Intel “in the forefront and the center to the game of artificial intelligence”, along with the share of the United States government, adding “a few golden weeks for Intel after years of pain and frustration with investors.”
Meanwhile, NVIDIA has risen because its specialized chips support the mutation of artificial intelligence. Chips, known as graphics processing units, or graphics processing units, are very effective in developing strong AI systems.
It was left from the celebration on Thursday was another rival of chips in the United States, which are small advanced devices. The shares in the maker of graphics processing units and a slightly central processing units chain fell on Thursday. Amd, Intel and Nvidia are located in Santa Clara, California.
The deal between NVIDIA and Intel comes at a time when China moves to be less dependent on American semiconductor technology. According to Chinese officials, many large local technology companies were prevented from purchasing NVIDIA chips, and based on Chinese Huawei, they have expanded their development in artificial intelligence and manufacturing chips.
While NVIDIA and Intel will work together to develop new chips, the manufacturing deal has not yet been concluded between the two. NVIDIA’s potential access to the NVIDIA INTEL chapter is a threat to a semiconductor manufacturer in Taiwan, which is currently making the leading treatments for the technology giant. Huang confirmed on Thursday that both his company and Intel remain “very successful agents” for TSMC.
Huang was in Britain on a visit coinciding with Trump’s trip to the country, and he was attending the president alongside Silicon Valley Begueig.
At a signing ceremony for the Atlantic Technology Partnership on Thursday with British Prime Minister Kiir Starmer, Trump thought that artificial intelligence “controlled the world.”
Trump said, “I look at you, comrades. You control the world, Gansen.”
Huang and Trump also attended a royal banquet, prompting the technology pole to paint around the Windsor event for the CEO of Intel in the seconds before the press event.
“Cognac was excellent, but not enough of it,” said Huang Lan. “I think Koniak was from 1912.”
