NVIDIA Invests $5bn in Intel Amid China AI Chip Ban

NVIDIA has announced a $5 billion investment in Intel, acquiring shares at $23.28 each. The companies plan to jointly develop data center and PC products to enhance applications across various markets.

Intel will produce NVIDIA-custom x86 CPUs to integrate into NVIDIA's AI infrastructure platforms. NVIDIA CEO Jensen Huang emphasized that this collaboration will merge NVIDIA's AI stack with Intel's CPUs, laying the groundwork for a new computing era.

NVIDIA joins other investors in Intel, including Japan's SoftBank Group and the US government, which have recently made significant investments. Following NVIDIA's announcement, Intel's shares surged by nearly 25%.

The trade relations between China and the US have worsened from NVIDIA's perspective. China's Cyberspace Administration has ordered tech companies like Alibaba and ByteDance to stop using NVIDIA's AI chips.

Huawei has announced new computing systems using its Ascend chips, intensifying competition. An NVIDIA spokesperson stated that customers will choose the best technology stack for their needs.