NVIDIA has completed its US$5 billion investment in Intel, acquiring more than 214.7 million newly issued Intel shares through a private placement and securing roughly a 4% equity stake in the storied U.S. chipmaker. The deal, first announced in September and cleared by U.S. regulators in December, marks one of the most unusual strategic alignments in the semiconductor sector’s modern history.
Intel sold the shares at $23.28 each, providing the company with a major cash infusion as it works to recover from years of manufacturing delays, competitive pressure, and an $18.8 billion annual loss in 2024, its first since 1986. For Intel, the investment arrives as a stabilizing force after heavy capital spending on new fabrication plants strained its balance sheet.
For NVIDIA, the world’s most valuable semiconductor firm, the move is both strategic and symbolic. The investment deepens a growing partnership that will see the companies co‑develop next‑generation AI and data‑center technologies, including Intel CPUs optimized for NVIDIA’s GPU‑driven NVLink architecture. Analysts view the stake as a calculated bet on securing long‑term supply chain resilience and tighter integration across the AI computing stack.
The transaction also underscores a dramatic shift in industry dynamics: two longtime rivals—one dominant in AI accelerators, the other historically synonymous with CPUs—are now aligning interests at a moment when global demand for advanced computing power is surging.
With the placement now complete, NVIDIA’s investment stands as both a lifeline for Intel and a strategic foothold in shaping the future of AI‑centric hardware.
Intel headquarters, Santa Clara, California Picture by Coolcaesar
