Nvidia has finalized a substantial investment in rival chipmaker Intel by acquiring $5 billion worth of common stock, according to a regulatory filing and official statements (via Reuters).
The deal, first announced in September, saw Nvidia purchase more than 214 million Intel shares at roughly $23.28 per share as part of broader plans to collaborate on future semiconductor technology.
The share acquisition was carried out through a private placement, a process in which Nvidia bought Intel stock directly rather than on public markets. The transaction received clearance from U.S. antitrust regulators, with the Federal Trade Commission approving the investment earlier in December.
When the deal was first unveiled, Nvidia and Intel revealed intentions to work together on designing and building advanced chips for both data centers and consumer devices. Under the broader agreement, Intel will develop custom x86 central processing units tailored to Nvidia’s AI infrastructure platforms. At the same time, Intel plans to produce integrated system on chips for personal computers that bring together its CPUs with Nvidia’s RTX technology.
This partnership comes at a critical moment for Intel, which has faced financial and competitive pressures in recent years. The company’s aggressive investments in expanding its manufacturing capacity and modernizing its chip fabrication facilities have strained margins and weighed on profitability. The $5 billion investment from Nvidia provides Intel with a significant capital boost.
For Nvidia, the investment also represents a strategic expansion into the broader CPU ecosystem. Traditionally known for its leadership in graphics processing units and AI accelerators, Nvidia stands to benefit from closer ties to Intel’s x86 architecture and manufacturing expertise.
Nvidia’s commitment to invest billions in Intel aligns with similar strategic bets, such as its licensing agreements with AI startups and multibillion dollar commitments to firms like OpenAI.
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