Silicon Valley has a new powerhouse alliance: Nvidia is investing $5 billion in Intel, acquiring a 4% equity stake and launching a joint plan to develop chips for AI data centers and gaming PCs.
The news sent shockwaves through the market — Intel’s stock jumped 25%, just weeks after the U.S. government purchased a 10% stake in the struggling chipmaker. The biggest loser in this shake-up was AMD, whose shares tumbled as investors realized two industry giants were joining forces against it.
The partnership has a dual focus: for data centers, the companies will develop custom x86 processors with integrated Nvidia NVLink, promising much faster communication between chips. On the PC side, the plan is to launch x86 system-on-chip solutions with Nvidia RTX GPU chiplets, directly targeting AMD’s dominance in the gaming segment.
This alliance could mark the end of AMD’s winning streak, merging Intel’s legacy in x86 architecture with Nvidia’s AI leadership. At the same time, it reflects the broader U.S. strategy: combining government subsidies with private billions as a way to maintain leadership in the semiconductor industry and stay ahead of China.
In brief: Tech World Highlights
- Donald Trump appointed Airbnb co-founder Joe Gebbia as the first U.S. Chief Design Officer, tasked with redesigning 26,000 outdated federal websites.
- U.S. tech giants Meta, X, and LinkedIn filed an appeal against Italy’s precedent-setting VAT demand, in a case that could impact tax rules across all 27 EU member states.
- OpenAI and SoftBank’s multibillion-dollar AI project Stargate has reportedly scaled back initial ambitions, now planning to build only a smaller data center in Ohio this year.
- Chicago will become home to a $1 billion quantum computer developed by PsiQuantum, with construction starting in 2025 and operations planned for 2028.
- French pharma giant Sanofi is acquiring British biotech firm Vicebio for $1.15 billion, adding a new mRNA vaccine that’s easier to store to its portfolio.
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