Nvidia Sets to Commit $5 Billion in Investment Towards Collaborative Chip Development with Previous Competitor Intel
In a significant turn of events, Nvidia and Intel have announced strategic partnerships and investments that are set to reshape the tech landscape.
During a recent visit to the UK, Nvidia CEO Jensen Huang attended a state dinner at Windsor Castle alongside former U.S. President Trump and King Charles III. The visit also marked the announcement of Nvidia's plans to invest more than $14 billion into AI and data center infrastructure around the U.K. This move is expected to strengthen the U.S.'s lead in the AI Arms Race against China.
Meanwhile, Intel, a company that has been grappling with multiple CEO changes, technical blunders, and strategy shifts in recent years, has received a boost. The U.S. government recently purchased a 10% stake in Intel, worth nearly $9 billion, as part of the Biden-era CHIPS Act. This unprecedented investment aims to bolster Intel's position in the tech industry.
The new CEO of Intel, Lip-Bu Tan, has been at the helm since March 12, 2025. Tan's tenure, however, has not been without controversy. In August 2025, he was publicly called to resign by former U.S. President Donald Trump due to alleged conflicts of interest related to Chinese companies. However, a meeting between Tan and Trump in the Oval Office seems to have changed Trump's tone towards Tan.
In a move that could be a game-changer for Intel, Nvidia is investing $5 billion in the company. Tech analyst Dan Ives has praised this deal, stating that it brings Intel "front and center into the AI game." This partnership between Intel and Nvidia will see them collaborating to develop chips for PCs and data centers.
Intel's shares surged 23% on the announcement, lifting its stock market value to $143 billion. Nvidia, valued at over $4.2 trillion, advanced 3.5% on the news.
At a news conference with U.K. Prime Minister Kier Starmer, Trump gave Huang a shoutout, saying "You're taking over the world, Jensen." Trump's support for Nvidia and Huang is not surprising, given his praise for Tan's success and rise, as expressed in a Truth Social post.
However, Trump's support for Intel has been more complex. In a social media post, he added that there is "no other solution" to the problem and called for Tan's resignation. This call was based on concerns expressed by Sen. Tom Cotton about Tan's past work for Chinese firms.
Despite these challenges, it is clear that the tech industry is set for an exciting period of growth and innovation, with Nvidia and Intel at the forefront. Sales and profit margins at Intel have been hit hard as the company lost its dominance, but with these strategic partnerships and investments, it appears that Intel is poised for a comeback.
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