Nvidia to Buy $5 Billion Stake in Intel, Giving Rival a Lifeline
Nvidia, the world’s dominant maker of artificial intelligence chips, said on Thursday that it would invest $5 billion in its struggling rival, Intel, in a deal that illustrates how booming demand for A.I. has reshaped the global technology industry.
The deal is a lifeline for Intel and highlights a reversal of fortune between the two Silicon Valley companies. Once an industry leader, Intel has struggled to keep up with technology shifts to mobile devices and A.I. Last month, the Trump administration agreed to buy a roughly 10 percent stake in the company to bolster its shaky financial position.
Nvidia, by contrast, has become geopolitically significant and the world’s most valuable public company, producing the key chips needed for developing A.I. Jensen Huang, the company’s chief executive, is an industry superstar and joined President Trump in Britain this week for a state dinner at Windsor Castle.
News of the deal sent Intel’s shares soaring more than 25 percent to $31.79 on Thursday, while Nvidia’s stock rose about 3 percent. The value of the U.S. government’s stake in Intel, which it purchased for $20.47 a share late last month, also immediately increased.
The partnership between the two American chipmakers comes as China tries to reduce its dependence on U.S. chip technology and manufacture more semiconductors domestically. On Thursday, the Chinese technology giant Huawei said it was expanding A.I. chip development, which could challenge Nvidia.
Diese letztere Aussage dürfte wohl fraglich sein.Mr. Huang said the partnership would allow Nvidia to enter “a market segment we’ve never addressed,” which he said could be worth $50 billion. “We’re going to build revolutionary products; first-of-its-kind products,” he added.
Mr. Huang said the agreement would not result in Nvidia manufacturing its chips at Intel’s factories. He also said the Trump administration wasn’t involved in the deal.