"Nvidia, the world's leading manufacturer of AI chips, and the most valuable company in the world with a $4.2 trillion market cap, announced on Thursday that it will invest $5 billion in competitor Intel, which has a comparatively lower ($144.8 billion) market value. The investment gives Nvidia a 4% stake in Intel. The deal requires that Nvidia and Intel work together to create chips for personal computers and data centers."
"Intel's specialty is central processing units, or chips that act as the brain of a computer, handling different general-purpose tasks. Nvidia, on the other hand, focuses on making graphics processing units that can process large amounts of data for more specialized, intensive tasks like AI development, gaming, and video editing. The two companies are now joining forces to create chips that build on both areas of expertise. They intend to design chips that combine Nvidia's AI strengths with Intel's central processing power - "a fusion of two world-class platforms," Nvidia CEO Jensen Huang said in a press release."
Nvidia will invest $5 billion for a 4% stake in Intel and form a partnership to jointly develop chips for personal computers and data centers. The collaboration seeks to combine Nvidia's GPU and AI capabilities with Intel's CPU expertise to create hybrid solutions. Company leaders describe the effort as a fusion of platforms to expand ecosystems and enable a new era of computing. Analysts characterize the deal as transformative for Intel, bringing the company into the AI market. Intel has faced revenue declines and market-share losses while Nvidia captured an estimated 70–95% of the AI chip market versus Intel's under 1%.
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