NVIDIA will invest $5 billion to acquire shares of Intel as part of a new partnership.On Thursday local time, the two companies announced that NVIDIA agreed to invest $5 billion in Intel and stated that they would jointly develop PC and data center chips. This unexpected move will help support the struggling old rival.Following the announcement, Intel's stock surged 16% in pre-market trading.According to the statement, NVIDIA will purchase Intel common stock at a price of $23.28 per share, a 6.5% discount from Wednesday's closing price. Intel will use NVIDIA's graphics technology in its upcoming PC chips and provide processors for data center products built on NVIDIA hardware. The two companies did not provide a timeline for the launch of the first products and stated that this announcement would not affect their respective future development plans.This funding injection comes after the U.S. government agreed to take a stake of about 10% in August, with Trump personally acting as a salesman at the time. Japan's SoftBank Group unexpectedly invested $2 billion last month, promising to invest hundreds of billions of dollars in U.S. chip manufacturing and cloud infrastructure in the future. Intel is also raising funds by selling assets. Due to declining market share, its existing business can no longer bear the enormous expenses required to create cutting-edge semiconductors.This collaboration highlights the shift in power dynamics within the tech industry. Intel, which once viewed NVIDIA as a peripheral player in the industry, is now gaining financial support and leading technology through collaboration.Updating

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- Nvidia will invest $5 billion to acquire Intel shares as part of a new partnership.  
- The two companies announced they will jointly develop PC and data center chips, with Intel's stock rising 16% following the news.  
- Nvidia will purchase Intel common stock at $23.28 per share, and this collaboration highlights a shift in the tech industry's power dynamics.  

NVIDIA will invest $5 billion in Intel