Nvidia completes $5bn Intel investment as strategic partnership takes shape

Nvidia has officially completed its $5 billion strategic investment in Intel, progressing the partnership into execution. The investment involves Nvidia purchasing approximately 214.8 million shares at $23.28 each, translating to about a 4% stake. This completion follows regulatory approvals and was finalized on December 26. The partnership aims to develop custom products for data center infrastructure and PCs, with Nvidia positioned as a central player in AI-driven computing. Intel’s shares have rallied approximately 50%, placing Nvidia in a favorable position with an unrealized gain of nearly $3 billion. This investment not only represents a significant external backing for Intel, alongside substantial funding from the U.S. government and SoftBank, but it also symbolizes a vote of confidence from Nvidia. Both companies have been collaborating on CPU and server architecture for over a year, and investor focus is now shifting to how this collaboration will translate into competitive advancements.