Nvidia plans to invest $5bn in Intel and work on custom datacenters and PC products. Intel’s shares surged by 23%, the largest increase since 1987. Nvidia will buy Intel common stock at $23.28 a share. The collaboration aims to revolutionize computing with combined AI and accelerated computing technology.

The agreement between Nvidia and Intel will focus on connecting their architectures seamlessly. For datacenters, Intel will manufacture custom chips for Nvidia’s AI infrastructure, while for PCs, Intel will create chips integrated with Nvidia technology. This collaboration provides a lifeline for Intel, which has struggled in recent years amid the AI boom.

Nvidia’s investment in Intel is a significant move, following Softbank’s $2bn investment in the chipmaker. The collaboration between Nvidia and Intel is seen as validation of Intel’s position in the chip industry and may help Intel compete in the AI race. The chip landscape remains Nvidia’s domain, with increasing investments in AI infrastructure expected in the coming years.

Read more at AP: Nvidia to invest $5bn in Intel after Trump administration’s 10% stake