On 18 Sept, 2025, big rival companies sideline their rivalry and come together for historic collaboration to shock and reshape all the semiconductor industry, artificial intelligence, the chipmaker industry, and the personal computing industry.
The Nvidia and Intel alliance gives a great message to the other semiconductor chipmaker industry that they are the big players and sends shockwaves to other companies like AMD, etc., that Nvidia would never do an alliance with Intel. This time Nvidia plays a smart role in buying the share of Intel at the rate of $23.28 per share by investing the $5 billion in the Intel company. Nvidia gets 4% of the Intel Company and becomes one of the largest shareholders of the Intel Company.
Intel CEO Paul Otellini in 2005 proposed $20 billion for acquiring Nvidia. Now today Nvidia has invested $5 billion in the Intel Company. Paul Otellini and his company failed in forecasting GPUs and data centers and how big AI would become. Nvidia is already a king of AI and majorly relies on the Taiwan Semiconductor Manufacturing Company (TSMC) for the semiconductor and its chip production.
AMD Company stock dropped by 2% when news came out that Nvidia invested $5 billion in Intel Company.
Jensen Huang has been president and CEO of Nvidia since 1993. Under his leadership Nvidia transformed from a graphic card company to an artificial intelligence company.Its Signature Black Leather Jacket and its tech conferences, like GTC, Computex, and CES, are where he reveals the breakthrough of his company in AI computing.
On 19 Sept, 2025, the share market price of Intel increases by ~24%, Nvidia increases by ~4%, and the AMD share market price decreases by ~1%.
This Nvidia investment of $5 billion in the Intel company move comes a few weeks after the US government also took a 10% stake in Intel to help and support the American chipmaker company.
Intel’s main reason for this collaboration is that it uses the Nvidia proprietary NVLink technology that connects these two company architectures, and the high-speed link helps the CPU and GPU communicate faster, and it helps in massive datasets that are majorly used in AI. And from this partnership, end users get a better version of the gaming system and powerful generation GPU system-on-chips (SoCs) that are integrated with Nvidia RTX GPU chiplets.
