NVIDIA Invests $5 Bln In Intel Stock; To Jointly Develop Chips; Intel Stock Rises

(RTTNews) - NVIDIA Corp. (NVDA) and Intel Corp. (INTC) on Thursday announced a deal to jointly build AI infrastructure and personal computing products, which are expected to speed up applications across different markets. As part of the agreement, NVIDIA will invest a sum of $5 billion in Intel's common stock at a purchase price of $23.28 per share.

On the NASDAQ, INTC is rising 28 percent on Thursday's pre-market trading at $31.84.

The companies said that the investment is subject to customary closing conditions, including required regulatory approvals. As per the collaboration, the companies will work towards bring together their infrastructure making use of NVIDIA NVLink, using the benefits of NVIDIAs AI and speeding up computing with Intel's CPU technologies and x86 ecosystem to deliver exciting solutions for customers.

In the case of data centers, Intel will develop NVIDIA-custom x86 CPUs, which will be integrated into the latter's AI infrastructure platforms. For personal computing, Intel said that it will make x86 system-on-chips or SOCs, which include NVIDIA RTX GPU chiplets. These latest x86 RTX SOCs are expected to power different types of PCUs.

Commenting on the deal, NVIDIA founder and CEO Jensen Huang, said, "AI is powering a new industrial revolution and reinventing every layer of the computing stack from silicon to systems to software. This historic collaboration tightly couples NVIDIAs AI and accelerated computing stack with Intels CPUs and the vast x86 ecosystem a fusion of two world-class platforms."