American chip manufacturer Nvidia is investing five billion dollars (over 100 billion CZK) in its competitor Intel, which has recently been facing serious problems. The companies announced this today in a joint press release. The investment agreement includes cooperation in the development of chips for personal computers and data centers. Intel’s shares responded to the news with significant growth.
Nvidia enters Intel
According to Reuters, Nvidia is expected to own at least a four percent stake in Intel after the transaction is completed, becoming one of the company’s largest shareholders. The US government recently acquired a ten percent stake in Intel in exchange for $8.9 billion in state subsidies.
Nvidia founder and CEO Jensen Huang called the agreement with Intel historic. “Together, we will expand our ecosystems and lay the foundation for a new era of computing,” he said.
Intel under pressure, TSMC in the game
Intel once dominated the market for semiconductors, but has been struggling for several years. It lags behind in particular in the field of artificial intelligence (AI) chips, where Nvidia has taken the lead. Intel is also under stronger pressure in its traditional field of personal computer processors and data center chips.
“We appreciate the confidence Jensen and the Nvidia team have placed in us with their investment, and we look forward to the work ahead of us in innovating for customers and growing our business,” said Intel CEO Lip-Bu Tan. The announced agreement between Intel and Nvidia could pose a potential threat to Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chip manufacturer. TSMC manufactures Nvidia’s flagship chips, but in the future, Intel could also provide this manufacturing for Nvidia, according to Reuters.
Source: ČTK
