Nvidia to buy $5bn stake in rival Intel

The deal includes plans to collaborate on tech to power AI

- ADAM SATARIANO TRIPP MICKLE

Nvidia, the world’s dominant maker of artificial intelligence chips, said on Thursday that it would invest $5 billion in its struggling rival, Intel, in a deal that illustrates how booming demand for AI is reshaping the global technology industry.

The deal is a lifeline for Intel and highlights a reversal of fortune between two Silicon Valley companies. Once an industry leader, Intel has struggled to keep up with technology shifts to mobile devices and AI. Last month, the Trump administration agreed to buy a roughly 10% stake in the company to bolster its shaky financial position.

Nvidia, by contrast, has become one of the world’s biggest and most geopolitically significant companies, producing the key chips needed for developing AI. Jensen Huang, the company’s chief executive, is an industry superstar and joined President Donald Trump in Britain this week for a state dinner at Windsor Castle.

The Trump administration approached Nvidia nine months ago and asked it to invest in Intel, said two people with knowledge of the conversations, who were not authorised to speak about private discussions.