Nvidia Finalizes $5 Billion Intel Share Purchase After Antitrust Clearance

• Nvidia acquired 214.7 million Intel shares for $5 billion at $23.28 per share.

• Deal cleared by U.S. Federal Trade Commission, enabling tight integration of Nvidia GPUs and Intel CPUs.

• Intel shares unchanged post-announcement; Nvidia stock surged over 1% to $190.53.

Nvidia Intel $5 billion deal finalized: 214.7M shares bought, NVLink integration for AI computing. Explore collaboration impacts, Groq license, FAQs. Key takeaways for investors.

What is the Nvidia Intel $5 billion deal?

The Nvidia Intel $5 billion deal involves Nvidia purchasing approximately 214.7 million shares of Intel common stock at $23.28 per share, totaling $5 billion, as announced in September and finalized on Monday. This investment follows years of Intel’s capital-intensive expansions and represents a strategic multi-generation collaboration across PCs and data centers. It cleared U.S. antitrust reviews, paving the way for integrated hardware solutions combining Nvidia’s AI accelerators with Intel’s CPU ecosystem.

How will Nvidia and Intel collaborate on NVLink technology?

The partnership focuses on seamlessly connecting Nvidia’s NVLink interconnect to pair its RTX GPUs and AI computing stack with Intel’s x86 CPUs. Intel plans to design and manufacture custom data center and client CPUs using NVLink, alongside x86 system-on-chips (SoCs) integrating RTX GPU chiplets for a wide range of PCs. This fusion aims to boost application deployment in enterprise and consumer markets. Jensen Huang, Nvidia’s Founder and CEO, stated: “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 CEO Lip-Bu Tan emphasized that the x86 architecture remains foundational to modern computing, with ongoing innovations to support future workloads. U.S. Federal Trade Commission clearance in early December confirmed no antitrust concerns, and Nvidia shares rose over 1% to $190.53 post-announcement.

Frequently Asked Questions

What is Nvidia’s nonexclusive license deal with Groq?

Nvidia agreed to purchase a nonexclusive license for Groq’s technology, reportedly boosting Groq’s valuation to around $20 billion from $6.9 billion in its prior $750 million funding round. The deal includes hiring key Groq employees. Truist Securities analyst William Stein noted the valuation exceeds estimated revenues of $90-500 million but aligns with Nvidia’s cash position.

How does Nvidia’s vendor financing strategy impact its growth?

Nvidia faces scrutiny over deals like a $10 billion annual investment in OpenAI over 10 years for chip purchases and a $22 billion capacity buy from CoreWeave, including $350 million in stock. Critics compare it to Lucent Technologies’ past overextension. Nvidia refutes reliance on such financing for revenue, while investor James Anderson expressed concerns. These arrangements total over $125 billion in 2025 deals.

Key Takeaways

• Strategic Investment: Nvidia’s $5 billion Intel stake enables NVLink-based hardware integration for AI and computing.
• Market Reaction: Nvidia shares up 1% to $190.53; Intel steady, signaling investor confidence in collaboration.
• Broad Deals: Nvidia’s 2025 activities, including Groq license, underscore aggressive expansion despite vendor financing debates.

Conclusion

The Nvidia Intel $5 billion deal marks a pivotal step in merging Nvidia’s AI prowess with Intel’s CPU dominance through NVLink, potentially reshaping PC and data center architectures. With antitrust approvals secured and expert endorsements from leaders like Jensen Huang and Lip-Bu Tan, this collaboration, alongside Nvidia’s Groq technology license, positions both firms for ecosystem expansion. Investors should monitor stock performance and integration milestones as these developments lay groundwork for next-generation computing innovations.

Nvidia’s move alleviates Intel’s financial strains from expansions, fostering joint x86 RTX SoCs for enhanced personal and enterprise computing. Analyst insights from Truist Securities highlight the deals’ scale relative to Nvidia’s cash flow, while concerns from figures like James Anderson underscore risks in vendor financing practices seen in OpenAI and CoreWeave arrangements. This comprehensive strategy reflects Nvidia’s dominant position in accelerated computing amid a competitive semiconductor landscape.