Mentioned:
Nvidia is pouring billions of dollars into Intel. And together they’re planning to dominate the future of domestic chip production.
What’s happening:
- Nvidia (NASDAQ: NVDA) is investing $5B USD into Intel (NASDAQ: INTC) as part of a new strategic investment and partnership
By the numbers:
- Intel will issue approximately 214M common shares to Nvidia at a price of $23.28 USD per share as part of the investment
- Nvidia will own roughly 4% of Intel following the investment
Why it matters:
- Nvidia and Intel have publicly stated the investment is part of a larger partnership in which Intel and Nvidia will co-develop new leading edge chips for both personal computers and data centres
Going deeper:
- Intel has been making a flurry of moves lately, including granting the United States of America a 10% ownership stake in exchange for $8.9B USD in government funding that Intel had previously received through the CHIPS Act and the Secure Enclave program
The intrigue:
- Nvidia and Intel also just recently made waves when they both directly invested into humanoid robotics company Figure together in a new $1B USD Series C financing round
