The move comes just weeks after the White House engineered a deal for the US to take a 10 per cent stake in Intel
Nvidia said on Thursday it would invest US$5 billion in Intel, throwing its heft behind the struggling US chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company.
Nvidia’s support represents a new opening for Intel after years of turnaround efforts failed to pay off and it triggered a 25 per cent jump in the US manufacturer’s shares.
That led to a swiftly arranged meeting in Washington that ended with Intel’s unusual arrangement to give the US a 10 per cent stake in the company.
This new pact includes a plan for Intel and Nvidia to jointly develop PC and data centre chips but crucially will not involve Intel’s contract manufacturing business, known as a “foundry” in the chip industry, making computing chips for Nvidia.
