SAN FRANCISCO/WASHINGTON ¨C 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 federal government to take a massive stake in the company.
Nvidia¡¯s support offers Intel a new chance after years of turnaround efforts failed to pay off, and triggered a 23% jump in the U.S. chip manufacturer¡¯s shares. The stake will make Nvidia one of Intel¡¯s largest shareholders, giving it roughly 4% of the company after new shares are issued.
Intel ¡ª once the chip industry¡¯s flag bearer that claimed to put the ¡°silicon¡± in Silicon Valley ¡ª appointed a new CEO, Lip-Bu Tan, in March. He quickly came under fire from U.S. President Donald Trump, who called his resignation due to concerns about his connections with China. This led to a swiftly arranged meeting in Washington that ended with Intel¡¯s unusual arrangement to give the U.S. a 10% stake in the company.
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