Nvidia buys $5 billion worth of Intel shares

Nvidia and Intel announced the expansion of a strategic partnership, within the framework of which the largest company in the world by market capitalization has invested significantly in its long-time ally. The deal became a notable event for the industry and practically supported Intel against the backdrop of difficult financial times.

The agreement between Nvidia and Intel was reached this fall. As part of it, the company led by Jensen Huang acquired 214.7 million Intel shares for a total amount of about $ 5 billion. The cost of one share at the time of the transaction was $ 23.28. Thus, Nvidia became one of the major shareholders of the partner, although the exact size of the stake has not yet been disclosed.

The companies intend to deepen technological interaction. This concerns the development of Nvidia’s artificial intelligence infrastructure based on high-performance Intel processors, as well as the release of Intel consumer processors that will be equipped with Nvidia graphics solutions. This format of cooperation should strengthen the positions of both parties over the computing and AI market.

Despite the lack of details on the size of the stake, it is known that the deal has already received approval from American regulators. Its financial parameters look like a long-term bet on the future partnership of the two technology giants in the face of growing competition in the AI ​​and data center segment.

Intel emphasizes that the need to expand production capacities will not lead to the freezing or revision of current projects. The company says that it has already updated its roadmap and continues to implement planned initiatives, counting on the stabilization and further development of the business.