Nvidia to buy $5 billion stake in Intel | LiveNOW from FOX

Nvidia is investing $5 billion in Intel, purchasing common stock at $23.28 per share. This collaboration will focus on developing custom data centers for AI infrastructure and personal computer products. The deal offers a significant boost to Intel, a company that once led the personal computer market but has struggled with the shift to mobile computing and the recent AI boom.

The partnership aims to merge Nvidia's AI and accelerated computing capabilities with Intel's CPUs and the x86 ecosystem, creating a combined platform for future computing advancements. Intel's stock saw a 30% surge in pre-market trading following the announcement, while Nvidia's shares gained 3%.

• Nvidia is investing $5 billion in Intel.
• The investment involves purchasing Intel common stock at $23.28 per share.
• The collaboration will focus on custom data centers for AI infrastructure and personal computer products.
• This partnership aims to combine Nvidia's AI computing stack with Intel's CPUs and the x86 ecosystem.
• Intel's shares rose 30% in pre-market trading, while Nvidia's shares increased by 3%.

Related Video Summary

• Nvidia Earnings: Traders Hope AI Chip Firm Can Soothe Tech Bubble Fears
• Trump announces more tariffs, reportedly to ask chipmakers to manufacture more in US
• Why the US & NVIDIA Just Bailed Out Intel (and What It Means for AI)
• AI-fueled market bubble concerns emerge as Big Tech companies invest billions

Nvidia Invests $5 Billion in Intel [00:00]

• Nvidia is investing $5 billion in Intel, as announced on a Thursday.
• The investment involves purchasing Intel common stock at $23.28 per share.
• This agreement is subject to regulatory approvals.

This significant investment by Nvidia into Intel aims to provide a crucial lifeline for the latter. The deal underscores a strategic move to leverage both companies' strengths in the evolving tech landscape.

"This historic collaboration tightly couples Nvidia's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem, a fusion of two worldclass platforms."

Collaboration on AI Infrastructure and PCs [00:15]

• Nvidia and Intel will collaborate on custom data centers, which are the backbone of artificial intelligence infrastructure.
• They will also work together on personal computer products.
• The goal is to expand their respective ecosystems and lay the foundation for the next era of computing.

The partnership is designed to create synergistic product development, focusing on critical areas like AI infrastructure and the future of personal computing. This joint effort seeks to drive innovation and solidify their market positions.

"Together, we will expand our ecosystems and lay the foundation for the next era of computing."

Market Impact and Intel's History [00:56]

• The agreement provides a lifeline for Intel, a former Silicon Valley pioneer that experienced decades of growth powering the personal computer boom.
• Intel faced challenges after missing the shift to the mobile computing era and has fallen further behind amid the AI boom that propelled Nvidia's success.
• Following the announcement, Intel's shares soared 30% in pre-market trading, while Nvidia's shares added 3%.

This development highlights Intel's historical significance and its current efforts to regain momentum by partnering with a leader in the AI space, demonstrating a clear impact on market valuations.