Thu, 18 Sep 2025

Thu, 18 Sep 2025 Chipmaker Nvidia to invest $5bn in rival Intel

The two American chipmakers will partner to make personal computer and data centre chips, in a lifeline for Intel as it struggles to profit from the AI boom.

* Nvidia, a leading manufacturer of AI chips, will buy a $5bn (£4bn) stake in Intel, making it one of the company's largest shareholders with a 4% stake.
* The deal is a partnership between the two companies to make personal computer and data centre chips, driven by growing demand for AI technology.
* Intel has struggled in recent years to build out its chip capacity and has fallen behind rival Nvidia, which dominates the AI market.
* Nvidia's CEO Jensen Huang said the partnership represents "a fusion of two world-class platforms" that will expand their ecosystems and lay the foundation for future computing advancements.
* The deal is also seen as a way for Nvidia to diversify its production away from competitors like Taiwan's TSMC, and to support the US administration in its efforts to prop up domestic chip production.
* Intel's CEO Lip-Bu Tan said he appreciated the confidence that Jensen Huang has placed in the company.
* However, analysts note that the deal may not address Intel's struggles with its contract manufacturing business, which makes chips for other companies.
* The partnership comes against a backdrop of challenges in the Chinese market, where Nvidia is struggling to sell its AI chips due to the US-China trade war and China's efforts to develop domestic chip production.
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