Nvidia to invest $5 billion in Intel to jointly develop chips

Under the terms of the agreement, Nvidia will acquire Intel shares at $23.28 per share. Intel will use Nvidia's graphics technology in its future PC processors and supply its CPUs for data center products built on Nvidia's solutions. The timing of the first products' market launches is not specified, and the companies note that the deal will not affect their individual business plans.

"This historic collaboration deeply aligns Nvidia's AI and accelerated computing with Intel's processors and broad x86 ecosystem – converging two world-class platforms," ​​Nvidia CEO Jensen Huang said in a statement.

For Intel, these investments are part of a series of capital raising measures. The company previously received investments from the US government and Japan's SoftBank, and also sold assets. Intel's current operations, weakened by market share loss, do not cover the high costs of developing advanced semiconductors.

The partnership between the two Californian competitors reflects a shift in the balance of power in the industry. Intel is receiving financial support and access to cutting-edge technology from a company it previously relegated to the margins of the market.

In the PC segment, integrating Nvidia technologies will help Intel compete with Advanced Micro Devices Inc., which is increasing its market share. In the data center sector, Intel will supply processors for Nvidia products, where they are needed to perform tasks not suitable for graphics accelerators.

Meanwhile, Nvidia continues to develop its own processors based on Arm technology and has no plans to abandon these plans. The $5 billion investment represents less than 5% of Intel's market capitalization, which is estimated at $116 billion. Nvidia's market capitalization exceeds $4 trillion.