Intel receives billion-dollar support from Nvidia

Billion-Dollar Aid Intel Can Look Forward to A Substantial Financial Boost from Nvidia

2025-09-23 Source: dpa 2 min Reading Time

The struggling chip pioneer Intel is receiving billion-dollar support from competitor Nvidia, although the latter isn’t exactly in a position to laugh either...

The once-leading Intel corporation in computer chip technology has been living in the shadows for some time. The leap onto the AI chip bandwagon has not been entirely successful. All the more surprising is that the thriving competitor Nvidia is now stepping in with billions...(Image: Intel) — The once-leading Intel corporation in computer chip technology has been living in the shadows for some time. The leap onto the AI chip bandwagon has not been entirely successful. All the more surprising is that the thriving competitor Nvidia is now stepping in with billions...
(Image: Intel)

Intel is struggling, whereas Nvidia, once primarily known for graphics cards, is doing fairly well. Nvidia's chip systems have become a key product for training and operating artificial intelligence (AI) software, which has caused its market value to skyrocket. Nvidia is now even set to buy Intel shares for around five billion dollars, as reported by the dpa. However, the technical collaboration could be even more important for Intel, according to the report. The two companies are said to be planning to jointly develop chips in the future. Intel will, among other things, produce processors from its X86 system that are tailored to Nvidia technology for data centers. Following the news, Intel's stock surged by an impressive 23 percent in U.S. trading. The partnership with Intel shows that the computer world has fundamentally changed, said Nvidia CEO Jensen Huang.

From the Top to Mediocrity

Intel was once a leading brand in the chip industry. However, in recent years, the company has increasingly lost significance. Smartphones and most tablet computers now run on technology from chip developer Arm—meaning "Intel inside" is no longer relevant. And when it comes to systems for AI, no one currently comes close to Nvidia. Intel's plan for some time now has been to become more of a contract manufacturer for other chipmakers. However, potential customers have been hesitant so far. As a result, ambitious plans to build new factories have been scaled back. Among other things, the planned factory in Magdeburg (Germany) was canceled. Even during the press conference following the announcement, Nvidia's CEO did not commit to whether the company would use Intel's contract manufacturing capacities.

Nvidia Benefits from it Immediately

The U.S. government recently secured a stake of around ten percent in Intel. The purchase was financed using billions in subsidies already promised last year. Intel was originally supposed to receive the money as free support for building new factories in the U.S., but U.S. President Donald Trump wanted something in return. For Nvidia, on the other hand, the investment proved profitable on the very first day. The purchase price for the investment was $23.28, but the stock rose to $30.57 by the close of trading in New York following the announcement. However, Nvidia doesn't have an easy path either! China plans to ban its major companies from purchasing a high-tech chip that was specifically developed to circumvent trade restrictions.

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Date: 08.12.2025

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