The White House has denied involvement in the deal despite Nvidia’s CEO meeting with US President Donald Trump a day ago.
Released on September 18, 2025
Nvidia says it has invested $5 billion in Intel and casts weight behind a struggling US chip company, but has stopped giving Intel a critical manufacturing contract.
Santa Clara, California-based Nvidia announced its investment on Thursday.
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The agreement, which also includes plans to jointly develop personal computers and data center chips by Intel and Nvidia, represents a potential risk to Taiwan’s TSMC. TSMC currently manufactures Nvidia’s flagship processors. This is a business that the world’s most valuable companies can one day expand to Intel. AMD, which competes with Intel to supply chips to data centers, is also believed to be losing out due to Nvidia’s support of Intel.
The essential chip, which powers the global artificial intelligence boom, said it will pay $23.28 per share for Intel common stock.
But this is higher than the $20.47 per share price the US government paid for an extraordinary development on the 10% stake it took at Intel last month.
The White House denied involvement in the deal that comes the day after President Donald Trump met Nvidia CEO Jensen Huang on Wednesday.
New opening
Nvidia’s latest investment will make him one of Intel’s biggest shareholders and could own more than 4% of the company after new shares are issued to close the transaction.
Nvidia’s support represents Intel’s new opening after years of turnaround efforts at the well-known US manufacturer have not paid off.
Intel – The chip industry flag bearer who once claimed to put “silicon” in Silicon Valley – appointed new CEO Lip-Bu Tan in March. Tan has committed to building factory capacity only if there is a demand to make Intel’s operations lean and match them.
Importantly, the contract does not include Intel’s contract manufacturing business, known as “casting” in the chip industry, and creates Nvidia chips. Most analysts believe that in order for Intel foundries to survive, they will ultimately need to attract large customers such as Nvidia, Apple, Qualcomm, and Broadcom.
However, the deal comes from an increase in capital that has accumulated just weeks after Intel announced its $2 billion investment from SoftBank, receiving $5.7 billion from the US government.
Intel’s chief financial officer David Jinner told investors last month at the Deutsche Bank meeting. The company said it is a “good cash job” and does not require any further capital until there is a significant demand for 14A, a next-generation manufacturing process that expects to invest heavily in the building.
Under the deal announced Thursday, Intel plans to design a custom data center central processor that NVIDIA will package with an AI chip known as GPUS. Unique Nvidia technology allows Intel and Nvidia chips to communicate faster than before.
These rapid links are key differentiators in the AI market. This is because many chips need to work together to bite a lot of data.
Currently, Nvidia’s bestselling AI servers with these quick links are only available using Nvidia’s own chips, but this transaction will equal Intel and give you the opportunity to make money from each Nvidia server.
Nvidia stocks are rising on Wall Street. As of 12pm (16:00 GMT) in New York, it has increased by more than 3.4% since the market opened. Intel stocks have skyrocketed by over 29% that day.
