A massive sale of 214.78 million common shares of Semiconductor giant Intel Corporation to Nvidia at a cost of 5 billion is one of the milestones in a strategic alliance that will help in next-generation chip development. The share sale, priced at $23.28 per share, was completed on December 26 after the Securities Purchase Agreement was signed in September 2025.
The investment arrives at a dysfunctional time in the life of Intel, which has been striving to stay afloat amid decelerating growth and stiff competition. The company has recorded a loss of up to 18.8 billion U.S. dollars per year, according to sources, the first since 1986.
The acquisition also came after another agreement in which US President Donald Trump signed an agreement to obtain a 10 per cent stake in Intel to save the chipmaker and strengthen the domestic semiconductor production.
Under the Nvidia–Intel agreement, both companies will collaborate on co-developing custom chips for data centres and personal computing. "This historic collaboration tightly couples Nvidia’s artificial intelligence (AI) and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms," Nvidia founder and chief executive officer (CEO) Jensen Huang said in September.
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In the case of data centres, Intel will develop special x86 CPUs to work with Nvidia AI platforms, and personal computing will feature system-on-chips with Intel CPUs with Nvidia RTX GPU chiplets. For the semiconductor and technology ecosystem in India, the alliance will reflect greater impetus in AI infrastructure, advanced chip design, and global supply chains.
With India increasing its semiconductor production, data centre systems, and chip design, partnerships this large will speed up investments, innovation, and high-value employment in the electronic and AI-driven sector of the country.
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