The two competitors will collaborate to develop PC chips and data centers.
Nvidia became one of competitor Intel’s largest shareholders on Thursday with a $5 billion stake. The two companies will collaborate to jointly develop PC chips and data centers.
Once the dominant name in chips, Intel had been in a steady decline in recent years as it failed to keep up with peers like Nvidia in the AI race.
The company started its official turnaround strategy last year by ousting its previous CEO Pat Gelsinger, who was eventually replaced by Lip Bu-Tan a few months later.
Last month was a whirlwind for both Bu-Tan and Intel: Trump initially called for the CEO’s immediate resignation, citing “conflicts of interest” due to alleged ties to China. Only a few days of lobbying after, Trump not only walked back his words and called Bu-Tan “a success” but also announced a deal that would have the U.S. government take a 10% stake in Intel.
Announcing the deal on Truth Social, Trump said that the “United States of America now fully owns and controls 10% of INTEL.”
That investment, it turns out, was the real comeback for Intel. In its effort to become more competitive in the chips space, Intel now has the help of Nvidia, the biggest name in AI chips. The announcement sent Intel’s stock soaring by more than 30%.
