Nvidia CEO Jensen Huang has confirmed that the company’s $5 billion investment in Intel, alongside a new technology partnership, will mark a major milestone for both semiconductor giants.
Speaking to reporters on September 19, Huang revealed that Nvidia and Intel had been in discussions for nearly a year before finalizing the deal. He also emphasized his long-standing friendship of over 30 years with Intel’s new CEO, Lip-Bu Tan, as a key foundation for this cooperation.
“We believe this is going to be an incredible investment,” Huang stated.
Under the agreement, Nvidia and Intel will jointly develop artificial intelligence (AI) systems for data centers by integrating Intel’s x86 CPUs with Nvidia’s GPUs and networking technology. Intel will also supply processors for PCs and laptops embedded with Nvidia graphics – a segment that still has significant untapped potential.
Huang disclosed that Nvidia will become a major buyer of Intel CPUs, while also providing GPU chiplets for Intel’s upcoming products. The total addressable market for their collaboration is estimated at $50 billion.
The deal highlights a dramatic shift in the fortunes of both companies. Over the past five years, Intel shares have dropped nearly 32%, while Nvidia’s stock has soared more than 1,348%, pushing its market capitalization above $4.25 trillion – dwarfing Intel’s $143 billion.
AI infrastructure, particularly in massive data centers like Microsoft’s new $4 billion facility, now requires multiple Nvidia GPUs for every CPU, fueling Nvidia’s dominance in the AI era.
Since taking over in March, CEO Lip-Bu Tan has focused on cost-cutting, raising capital, and restructuring Intel. The company has secured $8.9 billion from the U.S. government, $2 billion from SoftBank, and raised additional funds through divestments. However, the future of Intel’s manufacturing arm, Intel Foundry, remains uncertain.
Analysts note that Intel needs a major foundry client to prove its production capabilities. While this current deal does not directly involve foundry operations, both companies left the door open for future cooperation in manufacturing.
The Nvidia–Intel partnership also carries strategic weight for the U.S., as Intel remains the only American company capable of producing cutting-edge chips. Recently, the Trump administration acquired a 10% stake in Intel as part of efforts to strengthen domestic semiconductor manufacturing.
White House spokesperson Kush Desai commented:
“Intel’s new partnership with Nvidia is a major milestone for American high-tech manufacturing.”
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