Nvidia invests USD5 billion in Intel

Nvidia will invest USD5 billion in Intel and jointly develop chips for PCs and data centres.

Transcript

00:00NVIDIA is throwing its weight behind the struggling U.S. chipmaker Intel with a $5 billion investment.

00:08The agreement is expected to challenge Taiwan's TSMC, which currently manufactures NVIDIA's most advanced processes.

00:18Under the new partnership, Intel would design custom CPUs for data centers,

00:23which NVIDIA would combine with its GPUs using proprietary links for faster communication.

00:29These faster connections were seen as crucial for artificial intelligence,

00:33where multiple chips must work together on massive data sets.

00:37Following the news, Intel shares jumped 12% in pre-market trading, while NVIDIA rose 2%.

00:43The investment also made NVIDIA one of Intel's largest shareholders, likely holding more than 4% of the company.