"Nvidia said on Thursday it would invest $5 billion in Intel, throwing its heft behind the struggling U.S. chipmaker just weeks after the White House engineered an extraordinary deal for the U.S. government to take a massive stake in the company. Most analysts believe that for Intel's foundry to survive, it would need to eventually win a large customer such as Nvidia, Apple, Qualcomm or Broadcom."
"Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it would pay $23.28 per share for Intel common stock, a price slightly below the $24.90 at which Intel shares closed on Wednesday. However, that is higher than the $20.47 price per share that the United States government paid for an extraordinary 10% stake it took in Intel last month."
Nvidia will invest $5 billion in Intel and will pay $23.28 per share for Intel common stock. The U.S. government recently acquired a roughly 10% stake at $20.47 per share. Many analysts say Intel's foundry viability depends on winning a large customer such as Nvidia, Apple, Qualcomm or Broadcom. Intel plans to design custom data-center central processors that Nvidia will package with its GPUs, and a proprietary Nvidia technology will enable higher-speed communication between the Intel and Nvidia chips. Intel's CFO said the company has a good cash position and expects to need little capital until demand for its 14A process materializes.
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