NVIDIA Finalizes $5 Billion Investment in Intel to Accelerate Custom AI Silicon Development

NVIDIA has officially completed a $5 billion equity investment in Intel, securing a four percent stake in the semiconductor giant. Finalized on December 29, 2025, the deal follows regulatory approval from the Federal Trade Commission. This agreement initiates a multi-year collaboration to develop custom hardware for data centers and personal computing.

The alliance focuses on connecting NVIDIA and Intel architectures through high-speed NVLink interconnects. This technical synergy combines NVIDIA’s AI computing dominance with the vast x86 ecosystem that Intel has built over decades. Intel will now manufacture custom x86 CPUs specifically for NVIDIA’s AI data center infrastructure.

On the consumer side, the companies are launching a class of "x86 RTX" system-on-chips. These processors integrate NVIDIA RTX GPU chiplets directly with Intel CPU cores using advanced packaging technology. This approach aims to deliver high-performance PCs capable of rivaling the integrated memory architectures found in Apple’s silicon.

NVIDIA purchased roughly 214.7 million shares of Intel common stock at a price of $23.28 per share. Since the agreement was first revealed in September, Intel's stock price has recovered significantly in the market. As a result, NVIDIA has already secured an unrealized gain exceeding $2.5 billion on its initial investment.

Jensen Huang, the founder and CEO of NVIDIA, emphasized that AI is reinventing every layer of the computing stack. He noted that coupling NVIDIA’s CUDA stack with Intel’s manufacturing capabilities creates a foundation for a new industrial era. The CEOs held a joint conference to discuss how these products will accelerate workloads across enterprise markets.

Lip-Bu Tan, appointed Intel CEO in early 2025, highlighted the agreement as a validation of Intel’s process technology. He believes the partnership will allow Intel to address customer challenges with innovative client computing platforms. This collaboration is a strategic pivot for Intel during its period of organizational transformation.

Analysts view the partnership as a competitive response to the rising market share of ARM-based alternatives. By ensuring x86 remains the primary host for AI workloads, NVIDIA secures its software moat while Intel gains a critical foundry customer. Collaborative products are expected to reach the market in late 2026. More details can be found at the NVIDIA Newsroom and Intel Newsroom.