Nvidia is making a surprising $5 billion bet on Intel, buying shares at $23.28 apiece, according to the official announcement.

The deal pairs Nvidia’s AI-dominant GPUs with Intel’s general-purpose chips to create new PC and data center solutions.

It follows the U.S. government’s 10% stake in Intel, a push to boost domestic chipmaking.

Nvidia CEO Jensen Huang called it a “historic collaboration,” signaling a rare alliance between longtime rivals.

Jensen Huang, said: “AI is powering a new industrial revolution and reinventing every layer of the computing stack — from silicon to systems to software. At the heart of this reinvention is NVIDIA’s CUDA architecture,” said Jensen Huang.”

According to Jensen Huang, “This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”

Intel shares jumped 30% in pre-market trading after the news.

The partnership could reshape competition with AMD and TSMC while advancing America’s semiconductor ambitions.

This is a developing story.

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