Nvidia CEO Jensen Huang announced a significant $5 billion investment and collaborative technology partnership with Intel during the “Winning the AI Race” Summit in Washington D.C., which took place on July 23, 2025. The collaboration is rooted in nearly a year of discussions between the two companies, marking a major shift in their respective fortunes within the tech industry, especially in the context of the AI boom ignited by OpenAI’s launch of ChatGPT in late 2022. As of recent trading, Nvidia’s shares have soared by 1,348% compared to a 31.78% decline in Intel’s stock over the past five years.
Huang emphasized the depth of his relationship with Intel CEO Lip-Bu Tan, referring to him as a “longtime friend,” and highlighted the confidence they share in the partnership. The agreement will see Nvidia co-develop data center and PC chips leveraging both Intel’s x86-based central processors and Nvidia’s powerful graphics processors. Huang indicated that Nvidia’s collaboration with Intel aims to enhance artificial intelligence systems for data centers and integrate Nvidia GPUs into Intel’s CPUs for laptops and desktops.
The announcement comes as Intel continues to grapple with challenges in its manufacturing business under Tan’s leadership. Since taking the helm, Tan has focused on cost-cutting measures and fundraising efforts to stabilize the company. Meanwhile, Nvidia plans to become a “very large” customer of Intel CPUs while supplying GPU technology for Intel’s chips, targeting an estimated addressable market of $50 billion across their collaborative initiatives.
Despite potential concerns regarding Nvidia’s relationship with Arm, Huang assured that the deal with Intel is distinct and targeted solely at their product divisions, not involving foundry operations, although future collaborations in that area have not been ruled out. The partnership will utilize Intel’s innovative packaging technology to streamline chip integration.
Tan expressed gratitude for the partnership, emphasizing a commitment to deliver strong returns on the investment. The agreement comes at a critical time for Intel, which is attempting to regain its foothold in the semiconductor market with the added support from Nvidia and recent financial backing from various investors.
In addition to this partnership, Intel has been pursuing aggressive cost-cutting strategies, including workforce reductions, as it seeks to restructure amidst its challenges. Analysts suggest that securing a prominent foundry client is essential for Intel at this juncture, as it seeks to validate its manufacturing capabilities.
The deal has garnered attention from industry observers and political figures alike, with some viewing the partnership as a pivotal moment for American semiconductor manufacturing. White House spokesperson Kush Desai remarked on the significance of the relationship between Intel and Nvidia for the tech sector in the United States.
As both companies move forward with this partnership, the landscape of the high-tech industry is likely to shift, with the potential for enhanced collaboration to drive innovation in AI technologies and manufacturing capabilities.
