Key Points
- Nvidia has finalized its $5 billion investment in rival chipmaker Intel.
- The deal was first announced in September at $23.28 per share.
- The investment provides a major financial lifeline for a struggling Intel.
- U.S. antitrust regulators had already cleared the deal earlier in December. Nvidia now owns over 214 million shares of Intel stock.
Nvidia has officially completed its massive $5 billion investment in Intel. The leader in AI chips confirmed the move in a new filing on Monday, finalizing a deal first announced in September. This transaction is widely seen as a major financial lifeline for Intel, a former chip giant that has struggled in recent years to keep up with the competition.
According to the filing, the world’s most valuable company purchased over 214.7 million shares of Intel stock. The price was locked in at $23.28 per share, the amount agreed upon three months ago. This means the news didn’t come as a surprise to the market. Nvidia’s stock dipped slightly in pre-market trading, while Intel’s shares remained mostly unchanged.
The investment gives Nvidia a significant stake in a company that was once its main rival. For years, Intel has spent billions trying to build new, advanced factories to catch up in the chip race. These expensive projects drained the company’s finances, making this $5 billion cash boost a critical part of its recovery plan.
The deal had already cleared its biggest legal hurdle. Earlier this month, the Federal Trade Commission (FTC) issued a notice officially approving the investment. This approval from U.S. antitrust regulators paved the way for the two companies to close the deal before the end of the year.
While the two companies still compete in several key areas, this investment shows a new level of cooperation in the semiconductor industry.
As the world becomes increasingly dependent on high-performance chips for everything from AI to data centers, this partnership could reshape the tech landscape.
