Jensen Huang Highlights the Benefits of the ‘Remarkable’ Nvidia-Intel Partnership.

One of the most valuable companies globally is extending a lifeline to Intel.

Nvidia, boasting a market capitalization of $4.3 trillion, announced today its commitment to invest $5 billion in Intel, the beleaguered US chipmaker recently embroiled in a unique investment agreement with the US government. Following this announcement, Intel’s stock surged by over 30 percent.

Additionally, the two American chipmakers are embarking on a collaborative product venture. In a statement released early Thursday, Intel indicated that “Intel’s leading CPUs and x86 ecosystem will seamlessly integrate with Nvidia’s AI and accelerated computing capabilities via NVLink,” a technology developed by Nvidia that links CPUs and GPUs.

Intel’s CEO Lip-Bu Tan shared a photo on X with Nvidia cofounder and CEO Jensen Huang. Tan expressed enthusiasm about collaborating with his “good friend Jensen” to co-create custom data center and PC chips.

During a press briefing, Huang highlighted that this partnership will enable Nvidia to expand its rack architecture systems that pair 72 GPUs with custom CPUs. He also noted that collaborating with Intel will allow Nvidia to capture a larger share of the personal device market. “With 150 million laptops sold each year,” he stated, “we are now developing a system-on-a-chip that combines two processors into a single massive SoC, introducing a new class of integrated laptops not previously seen in the market.”

Huang projected that this alliance could represent an annual opportunity worth between “$25 billion and $50 billion.”

Nvidia’s investment follows the US government’s acquisition of approximately a 10 percent stake in Intel, converting billions in CHIPS Act grants into equity.

The US government is also reviewing export controls that have restricted Nvidia’s (and AMD’s) ability to sell advanced GPUs to China. Recently, the administration indicated it would issue export licenses to Nvidia and AMD, allowing them to sell select chips to China, provided the companies share 15 percent of the earnings with the US government.

Huang clarified that the Trump administration had no role in Nvidia’s discussions with Intel, which, according to him, have been in the works for nearly a year. “The Trump administration was entirely uninvolved in this partnership,” he remarked. “They would have been very supportive, of course. Today, I had the chance to inform [Secretary of Commerce, Howard Lutnick], who expressed enthusiasm and support for American technology firms collaborating.”

However, Pat Moorhead, founder and principal analyst at Moor Insights & Strategy, believes that “Nvidia gains favor with the administration through this investment.”

Ray Wang, research director for Semiconductors and emerging tech at the Futurum Group, added, “The administration’s decision to invest in the company certainly helps Intel attract more external investments, similar to earlier backing from SoftBank and now Nvidia.”

Wang also pointed out that the original announcement of the Intel-Nvidia partnership did not include any mention of Intel’s Foundry Services, which provides cutting-edge chip design and manufacturing capabilities to Intel’s clients. Nvidia primarily depends on Taiwan Semiconductor Manufacturing Company for these services. (TSMC also produces some of Intel’s chips.)