Nvidia CEO Jensen Huang will be attending the “AI Race Winning” Summit held in Washington, DC, USA on July 23, 2025.
Kent Nishimura | Reuters
nvidia CEO Jensen Huang has announced that the company’s $5 billion investment and technology collaboration Intel It comes after nearly a year of discussion between the two companies.
Huang said he personally communicated with Intel CEO Lip-Bu Tan about the partnership. He called Tan “a longtime friend” in a Thursday call with reporters after the company announced that NVIDIA would jointly develop PC chips with Intel as part of an investment deal. Over the phone, Tan said he and the fans had known each other for 30 years.
“We thought it would be a very incredible investment,” Huang said.
nvidia He said he will work with Chipmaker to create an artificial intelligence system for data centers that combines Intel’s X86-based central processor with Nvidia’s graphics processor and networking.
Intel It also sells CPUs for PCs and notebooks that integrate Nvidia graphics processors or GPUs.
Intel revenue chief Greg Ernst wrote in a LinkedIn post, adding that he had reached a contract on Saturday, Intel revenue chief Greg Ernst said the deal itself took months.
The investment highlights how the assets of both companies switched in the order of Silicon Valley pecking order as a result of the AI explosion with Openai’s ChatGPT launch in late 2022.
Intel shares have fallen 31.78% over the past five years, while NVIDIA shares have risen 1,348% as of Thursday’s opening price. Nvidia is worth more than $4.25 trillion, while Intel is worth $143 billion.
How Intel and Nvidia work together
For decades, the most important part of a PC or server was the central processor, and Intel dominated the market for those chips. However, AI infrastructure, like Microsoft’s $4 billion data center machine announced Thursday, often requires two or more NVIDIA GPUs per CPU.
NVIDIA AI systems like NVL72 used by Microsoft are arm-Basic CPU instead of Intel X86-based CPU. On the phone, Huang said Nvidia will immediately support Intel CPUs with AI’s NVLink rack.
“You buy those CPUs from Intel, connect them to the super chip, make it a compute node, and it’s integrated into a rack-scale AI supercomputer,” says Huang.
Nvidia will also donate GPU technology to Intel chips that ship on laptops and PCs, a market that is underserved, Huang said. In total, the addressable market for the two product collaborations is worth $50 billion, Huang said.
“We are going to be a very large customer of Intel CPUs and will be a large supplier of Intel’s GPU Chiplets,” he said.
Huang said that the deal with Intel would have a “no” effect on Nvidia’s business relationship with ARM.
Thursday’s investment agreement focuses on the relationship between Nvidia and Intel’s product divisions, not on the foundry. However, the two companies did not rule out future casting partnerships.
“We’ve always evaluated Intel’s Foundry Technology and will continue to do that, but today the announcement focuses solely on these custom CPUs,” says Huang. Nvidia is currently using it Taiwan Semiconductor Manufacturing Company To manufacture chips.
This collaboration is part of chip manufacturing that occurs towards the end of the process, and is part of chip manufacturing that combines several chip components into a single part that can be installed on the machine.
Intel CEO Lip-Bu Tan will give a speech on stage in Taipei, Taiwan on May 19, 2025.
Anne Wang | Reuters
Tan said he appreciated Nvidia’s confidence vote.
“I want to thank Jensen for their confidence. Our team and Inter will work really hard to make sure it’s a good return for you,” Tan said.
Last year, Intel’s board removed former CEO Pat Gelsinger as manufacturing costs rose and the company was unable to gain foothold with AI chips. In March, Intel nominated Tan, a connected investor, who turned its new CEO, Chip software company Cadence Design Systems.
Tan also focuses on cutting costs and raising funds with Intel during his short tenure, the company’s manufacturing future, known as Intel Foundry.
In addition to $5 billion from NVIDIA and $8.9 billion from the US government, Intel has received a $2 billion investment from SoftBank, selling its shares in ASIC’s subsidiary to Silver Lake for $3.3 billion and selling $1 billion from Mobileye, a self-driving vehicle subsidiary.
Intel also said it would cut down on key staff and eliminate 15% of its workforce by the end of the year in July.
The company develops and manufactures its own chips. nvidia and applebut we have not yet secured them as customers. Analysts say Intel needs a big casting client to show that its technology is stable and ready for volume production.
However, cutting-edge chip manufacturing is expensive and Intel may not continue to invest in its foundry if it cannot attract sufficient customers. It could trigger a response from Washington. Washington believes Intel is strategically important to the country as politicians and lobbyists are the only American company capable of producing the most sophisticated chips.
The Trump administration won a 10% stake in Inter in August. Intel had previously lined up to receive $8.9 billion in grants and loans from the Chips Act, but the Trump administration asked chipmakers for stocks in exchange for money and received them.
According to White House officials and Huang, Huang attended a state dinner at Windsor Palace this week and was with Trump in the UK to announce his new projects and investments in the UK.
“The new partnership between Intel and Nvidia is a major milestone in America’s high-tech manufacturing,” White House spokesman Kush Desai said in a statement.
-CNBC’s Megan Kasera contributed to this story
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