Intel completes $5 bn share sale to Nvidia following Sept agreement

The deal follows an agreement in September under which both companies agreed to collaborate on the co-development of custom chips for data centres and personal computing

Semiconductor firm Intel Corporation on Monday said it has completed the sale of 214.78 million of its common shares to chipmaker Nvidia for $5 billion as part of the previously signed agreement.

 

The sale, completed on December 26, follows a Securities Purchase Agreement signed between the two companies in September 2025. The shares were sold at $23.28 apiece.

 

Nvidia's investment in Intel was announced at a time when the company was facing slowing growth and mounting competition. According to Reuters, Intel reported an annual loss of $18.8 billion in 2024, marking its first such loss since 1986.

 

It also came shortly after United States (US) President Donald Trump signed a deal with Intel to acquire a 10 per cent stake to revive the struggling chipmaker and strengthen domestic semiconductor production.

 

 

Inside the Nvidia–Intel partnership

Under the new agreement, both companies have agreed to collaborate on the co-development of custom chips for data centres and personal computing.

 

"This historic collaboration tightly couples Nvidia’s artificial intelligence (AI) and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms," Nvidia founder and chief executive officer (CEO) Jensen Huang said in September.

 

Both firms will work on integrating Nvidia’s AI and accelerated computing technologies with Intel’s x86 CPU architecture. For data centres, Intel will design custom x86 CPUs for Nvidia, which will then be incorporated into Nvidia’s AI infrastructure platforms.

 

For personal computing, Intel will produce system-on-chips (SoCs) combining its CPUs with Nvidia RTX GPU chiplets, aimed at high-performance consumer systems.

 

Nvidia's investment also comes as part of its broader efforts to expand its footprint in the overall AI ecosystem. Recently, the company agreed to acquire key assets from Groq, a startup specialising in high-performance AI accelerator chips, in a $20 billion cash deal. Earlier this year, Nvidia also announced plans to invest $100 billion in OpenAI, a partnership that will add at least 10 gigawatts of Nvidia AI data centres to boost computing power for the developer of the ChatGPT AI chatbot.