Nvidia pours $5 billion into Intel's coffers.
In an unexpected move, tech giants Nvidia and Intel have announced a partnership aimed at developing user-centric data centers and PC products to accelerate application performance.
The deal, valued at $8.9 billion, sees Nvidia purchasing Intel's ordinary shares at a price of $23.28 per share. This unexpected move by Bloomberg has sent shockwaves through the tech industry.
Following the announcement, both companies have seen significant stock market gains. Intel's shares jumped nearly 30% to trade at $31.85 (+27.99%) as of 09:28 ET. Similarly, Nvidia's shares surged nearly 3% to trade at $174 (+2.01%) as of 09:27 ET (16:27 Moscow time) on the Nasdaq.
The partnership comes after the U.S. government acquired a 9.9% stake in Intel in August 2022. The government received the shares at a 17.5% discount, as announced by US President Donald Trump on August 23.
Under the terms of the agreement, Intel plans to create Nvidia's x86 processors for data centers and special chips for personal computers. This collaboration is expected to revolutionise the tech industry and set new standards for performance and efficiency in data centers and personal computers.
This partnership marks a significant milestone in the tech industry, bringing together two of the world's leading tech companies to drive innovation and improve user experience. As the details of the partnership unfold, the tech world eagerly awaits the outcomes of this groundbreaking collaboration.
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