Nvidia has agreed to invest $5bn in its struggling rival Intel as part of a deal to develop chips for PCs and data centres, the latest reordering of the tech industry spurred by artificial intelligence.Intel shares were up more than 22 per cent by yesterday afternoon after the announcement, which unites two of Silicon Valley’s longest-running rivals.The deal comes a month after the US government agreed to take a 10 per cent stake in Intel, as Donald Trump’s administration tries to secure the future of American chip manufacturing.But the pair’s announcement makes no reference to Nvidia using Intel’s foundry to produce its chips. Intel’s manufacturing business, which is losing billions of dollars a year and struggling to secure external customers, is seen as vital to US technological sovereignty.Intel, which has also largely failed to gain a foothold in the booming AI server market, lost its crown as the most valuable chipmaker to Nvidia in 2020.
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