TL;DR summary:
-
Nvidia has completed a $5bn private placement in Intel, formalising a ~4% equity stake.
-
The deal follows US government and SoftBank funding aimed at supporting Intel’s turnaround.
-
Intel’s recent share rally leaves Nvidia sitting on a sizeable unrealised gain.
—
Nvidia’s $5bn Intel stake becomes official as partnership shifts from promise to execution
Nvidia has formally completed its long-flagged $5 billion strategic investment in Intel, turning a headline-grabbing September announcement into settled cash, issued shares, and a now-official equity stake.
According to a securities filing highlighted by The Information (gated), Nvidia purchased roughly 214.8 million Intel shares at $23.28 apiece via a private placement, equating to an ownership stake of about 4%. The transaction closed on December 26 following regulatory clearance earlier this month, including early termination of the Hart-Scott-Rodino waiting period by the Federal Trade Commission.
The investment was originally unveiled in mid-September as part of a broader partnership between the two long-time rivals, aimed at jointly developing custom products spanning data-centre infrastructure and PCs. For Intel, the deal lands alongside substantial external backing, following $8.9 billion in US government funding and a separate $2 billion investment from SoftBank, all part of a wider effort to stabilise and revitalise the chipmaker’s manufacturing and product roadmap.
Market timing has worked decisively in Nvidia’s favour. Intel shares have rallied roughly 50% in recent weeks, leaving Nvidia’s $23.28 entry price well below prevailing market levels and implying an unrealised gain of close to $3 billion on paper. The discount also underscores the leverage enjoyed by Nvidia at a moment when it remains the central force in AI-driven computing.
Intel has stressed that the private placement does not grant Nvidia any special governance or information rights beyond those of a standard shareholder. Still, symbolically, the investment represents a rare vote of confidence from the industry’s dominant AI player at a sensitive juncture for Intel’s turnaround story.
Speaking at the original announcement, Nvidia CEO Jensen Huang described the collaboration as a “historic partnership,” noting that joint architecture teams across CPUs, servers and PCs had been working together for more than a year
