NVIDIA Finalizes a $5 Billion Investment in Intel
NVIDIA has announced that it has completed a $5 billion acquisition of a stake in Intel. This move completes an agreement that was first signed in September and had received clearance from U.S. antitrust authorities.
Details about the Transaction
Over the course of this transaction, NVIDIA acquired more than 214.7 million shares of Intel. They have not disclosed the precise percentage of their resulting stake in Intel.
Strategic Implications for Both Companies
This investment is expected to be a significant financial boosting to Intel. Company performance has been impacted by years of heavy investment to increase its production capacity. This deal is seen, by some analysts in the industry, as a make-or-break deal for Intel.
As per the agreement, media reports say Intel will manufacture x86-based processors for NVIDIA. Moreover, Intel will develop custom AI chips for NVIDIA, designed for data centers.
