Intel CEO Lip-Bu Tan calls Nvidia’s Jensen Huang a “Good Friend” as $5 billion partnership sends Intel stock soaring

In a landmark moment for the semiconductor industry, Intel and Nvidia have announced partnership to develop custom chips and next-generation computing systems. The deal between the two chip manufactures includes $5 billion investment by Nvidia.

After this announcement the Intel shares witnessed a 22.77% surge which closed at $30.57 — marking its sharpest rally of the year. After this announcement, Intel CEO Lip-Bu Tan also praised the collaboration and described Nvidia CEO Jensen Huang as a ‘Good Friend’. “Excited to team up with my good friend Jensen to jointly develop multiple generations of custom data center and PC products,” Tan posted on X.

A partnership of strengths

The partnership will see Intel make custom x86 CPUs which will be tailored for Nvidia’s AI infrastructure.

Along with this, the company will also build system-on-chip (SoC) solutions for PCs that integrate Nvidia RTX GPU chiplets. Also, Nvidia’s NVLink technology will work as a bridge between the two platforms and enable seamless performance. Tan also stressed in the fact that Intel’s legacy in x86 architecture and its manufacturing scale as key assets in the collaboration.“Our collaboration brings together the best of Intel and Nvidia to benefit customers—and shows how vital x86 architecture and NVLink will be in shaping the future of AI infrastructure and personal computing,” he said.

Huang: AI is the new industrial revolution

Nvidia CEO Jensen Huang also praised the alliance and called it transformative and a foundational step in the evolution of computing. “AI is powering a new industrial revolution and reinventing every layer of the computing stack—from silicon to systems to software,” Huang said.He further added that combining Nvidia’s CUDA platform with Intel’s CPU would enable a foundation for the next era of computing.

Investment details and market impact

Nvidia is investing $5 billion in its struggling former takeover target and rescue Intel through a strategic chip partnership. The deal announced sees Nvidia purchasing Intel stock at $23.28 per share—a 6.5% discount—while the companies collaborate on PC and data center processors. Nvidia CEO Jensen Huang has now explained why he decided to bet on Intel. As reported by Business Insider, Huang revealed that he still has confidence in the chipmaker’s turnaround.

“We’re delighted to have invested in Intel, and the return on that investment is going to be fantastic,” Huang said at a Thursday press conference.