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September 19, 2025 5:26 PM

Chipmaker Nvidia to invest $5bn in rival Intel
https://www.bbc.com/news/articles/c4gjd1mnjpyo

=Nvidia, the leading manufacturer of artificial intelligence chips, said it will buy a $5bn stake in Intel – a lifeline for its struggling rival on the heels of a separate investment from the US government.

The deal, announced on Thursday, will involve a partnership between the two American companies to make personal computer and data centre chips, as demand for AI continues to surge and companies seek to power massive data centres.

It will make Nvidia one of of Intel’s biggest shareholders, with a roughly 4% stake in the troubled semiconductor company.

Intel’s stock surged more than 25% on news of the deal, which could boost the once-dominant chipmaker. Shares in Nvidia rose roughly 3%.

Nvidia is motivated to invest in Intel in order to diversify some production away from other competitors – notably, Taiwan’s TSMC, said Gil Luria, head of technology research at D.A. Davidson. The chip giant is “now in the mode of investing in other companies in the AI ecosystem in order to keep the momentum for the emerging technology,” Mr Luria said.=