Intel shares increase by 30% while Nvidia announces an investment of $ 5 billion

This decision comes shortly after a whirlwind of corporate drama and politics involving Intel, the champion of American semiconductor chips, who saw President Trump call for the resignation of the CEO Lip-Bu Tan, his sudden reversal, then the American government itself making an unprecedented investment in Intel, taking an participation of almost 10% in the process.

NVIDIA, the world leader in artificial intelligence fleas, announced that it would invest $ 5 billion in Intel’s ordinary stock at a reduced price of $ 23.28 per share. The news caused a prior increase in Intel shares by 30%. The CEO of Nvidia, Jensen Huang, praised the agreement as a “historical collaboration” which will closely associate the AI ​​of Nvidia and the accelerated computer battery with the central processing units of Intel (CPU) and its ecosystem X86. More specifically, Intel will build and bring the system to the X86 (SOC) fleas which integrates the Nvidia RTX GPU chips.

“The AI ​​feeds a new industrial revolution and reinvents each layer of the computer battery – from silicon in software systems. At the heart of this reinvention is the Cuda architecture of Nvidia,” said Huang in the announcement press release. Together, he added, the companies will expand their ecosystems and “set the foundations for the next era of computer science”.

“Intel X86 architecture has been fundamental to modern IT for decades – and we have innovated in our portfolio to allow workloads of the future,” said Lip -Bu in the same version. He added that the Intel data center and customer computer platforms, and its process technology, its advanced manufacturing and packaging capacities will complete the “AI and accelerated IT to allow new breakthroughs for industry”.

Trump’s demand and rapid reversal

The partnership follows a dramatic series of events that started in August when President Trump, via Truth Social, publicly demanded the resignation of Lip-Bu Tan. Trump qualified Tan “very conflictual”, citing links reported with Chinese technological interests and the assembly of national security problems raised by legislators and the media, reporting specifically in the Financial time And Reuters and a strongly formulated letter from Senator Tom Cotton. Tan, previously with a design cadence and a respected figure of the Silicon Valley, postponed requests, affirming its commitment to the “highest legal and ethical standards”, but has not confirmed the disinvestment of the companies reported.

A few days later, Trump reversed the course at a meeting of the White House, praising Tan’s “incredible story” and inviting him to other discussions at the office level. The change followed bipartite calls to strengthen the American semiconductor industry in the midst of increasing technological competition with China – a feeling that foreshadowed the own historical actions of the federal government. Four former intel directors had written a comment to Fortune Shortly before this drama followed, expressing a lack of faith in the current leadership, in particular the lip Tan. FortuneGeoff Colvin reported that Intel had been widely understood that he had fallen into a 20 -year drop.

NVIDIA – The most precious company in the world with a market capitalization of more than $ 4 billions – The markets slightly disappointed in its last report on results, flea sales in China were missing from the previous quarters. The backdrop, as indicated by FortuneNicholas Gordon is that China rushes to create its own version of Nvidia essentially.

Since 2022, NVIDIA has been prevented from selling its most advanced chips to Chinese companies, and he has tried to get around this with new conceptions of fleas that can be sold, but it has also been a difficult sledge. Washington tightens its export controls, and Nvidia designs new products to comply, but Beijing’s pressure remains, with a conclusion this month that Nvidia violated Chinese antitrust laws. Nvidia warned in his earnings that he “might be unable to create a competitive product for the Chinese data centers market that receives government approval (United States)”. The alliance between Nvidia and Intel therefore reflects the emphasis on the strengthening of the champions of American chips.

Nvidia and Intel refused to comment beyond the press release announcing the investment. Companies will hold a press conference at 10:00 a.m. PST.

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