Nvidia acquires 5 billion dollar stake in Intel for strategic alliance
Intel and Nvidia have officially formalized a strategic partnership involving a $5 billion stock transaction, a deal first agreed upon in September by CEOs Jensen Huang and Lip-Bu Tan. Regulatory filings confirm that Nvidia acquired approximately 215 million Intel shares at a fixed price of $23.28 per share. With Intel’s stock recently trading near $38, Nvidia has already secured significant paper gains on the investment. The deal received approval from the Federal Trade Commission earlier in December, marking a distinct shift from the strict regulatory environment that previously blocked Nvidia’s attempt to acquire Arm in 2021.
Beyond the financial investment, the agreement establishes a roadmap for deep technical collaboration across data center and consumer markets. The companies plan to leverage Nvidia’s high-bandwidth NVLink interconnect to create tighter integration between Intel’s x86 CPUs and Nvidia GPUs, offering a faster alternative to traditional PCI Express connections for AI workloads. On the consumer side, the partnership aims to develop System-on-Chip (SoC) designs that fuse Intel processors with Nvidia RTX graphics, a move likely intended to challenge AMD’s dominance in high-performance APUs.