Nvidia invests $5 billion in Intel to jointly develop x86 CPUs with integrated RTX GPUs for PCs and data centers.

Nvidia is investing $5 billion in Intel common stock as part of a strategic collaboration to jointly develop multiple generations of custom data center and PC products. Under the partnership, Nvidia will help Intel build x86 system-on-chips (SoCs) that integrate Nvidia RTX GPU chiplets, which will power a wide range of PCs by closely integrating Intel's CPUs with Nvidia's GPUs. While Intel and Nvidia already have an established partnership on gaming laptops, combining both architectures on a single SoC represents a significant expansion of their relationship.

The collaboration positions both companies to better compete with AMD, which has been gaining ground on Intel with its impressive gaming desktop CPUs, APUs, and diverse AI laptop processors. The partnership also raises questions about the future of Intel's Arc graphics card business, particularly given that the company is now relying on Nvidia's GPU expertise. Additionally, Nvidia and Intel will work together on connecting their respective architectures via Nvidia's NVLink communications link system, which is used in data centers to link GPUs together. According to Nvidia, "Intel will build Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms and offer to the market."

Nvidia's investment in Intel follows reports that the chipmaker has been working with MediaTek to develop an accelerated processing unit (APU) combining an Arm-powered CPU with Nvidia's Blackwell GPU architecture. Nvidia has been rumored to be working on Arm-based laptop chips for years, and recent reports suggest an Nvidia Arm-powered gaming laptop could launch later this year with Alienware.

Nvidia CEO Jensen Huang emphasized the strategic importance of the deal, stating: "This collaboration tightly couples Nvidia's AI and accelerated computing stack with Intel's CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing."

Nvidia's investment comes as Intel seeks financial support from multiple sources. The US government agreed to take an approximately 10 percent stake in Intel last month, valued at $8.9 billion, while SoftBank is also investing $2 billion into the struggling chipmaker. Following Nvidia's announcement, Intel's stock price jumped 28 percent in pre-market trading.