Nvidia to Invest $5 Billion in Intel, Forge AI Infrastructure Partnership

Nvidia and Intel announced a strategic partnership on Thursday to co-develop custom data centers that form the backbone of AI infrastructure and to collaborate on personal computer products, with Nvidia investing $5 billion in Intel's common stock. The deal is subject to regulatory approvals.

Under the accord, the companies will jointly design data-center systems tailored to AI inference and training, aiming to accelerate performance, energy efficiency, and security for enterprise and cloud customers. They will also explore joint efforts on next-generation PC hardware leveraging Intel's processors and platforms, Nvidia said in a press release.

Intel has endured a prolonged slump after missing the shift to mobile computing and grappling with an AI boom that propelled Nvidia to the top of the market. Nvidia's rise has been fueled by demand for AI accelerators, making the two firms unlikely partners amid a reshaped industry landscape.

Investors greeted the announcement by pushing Intel's stock higher in premarket trading, with shares rising about 30 percent before the regular session. Analysts cautioned that gains could be tempered by regulatory reviews and execution risk of large, cross-company projects.

Industry watchers described the arrangement as a meaningful realignment in the AI infrastructure race, potentially broadening Intel's access to Nvidia's software ecosystem and giving Nvidia a stronger hardware basis for its AI software stack.

Observers noted that the deal reflects a broader trend in tech: AI workloads are pushing firms to jointly finance and manage specialized hardware, from data-center accelerators to client devices. The arrangement signals how large chipmakers are staking bets beyond chips, focusing on integrated AI platforms and a broader silicon-to-service approach.

Regulatory authorities will review the transaction for anti-competitive concerns, given the two firms' sizes and their roles in AI infrastructure and PC ecosystems. If approved, the collaboration could yield faster time to market for AI-ready systems and co-developed components, though it may require concessions or oversight measures.

Both companies described the deal as a long-term commitment to expanding AI capabilities across business and consumer computing. The partnership underscores the ongoing realignment in the chip industry as leaders seek to secure critical AI infrastructure amid a rapid shift in demand and use cases.