Nvidia Completes Purchase of $5-B in Intel Shares

Intel said in a regulatory filing that it has completed the sale of roughly 215 million shares worth about $5 billion to Nvidia.

The partnership will not involve Nvidia using Intel’s struggling manufacturing business, Intel Foundry Services (IFS). (Photo: Intel Facebook) 

The AI giant agreed to take the stake in September as part of a deal that had been about a year in the making, Nvidia CEO Jensen Huang said. Laura Bratton reported for Yahoo Finance.

The news sent Intel shares soaring. The deal was cleared by US antitrust agencies in mid-December.

The two companies are set to collaborate on developing CPUs for data centers and personal computers.

Crucially, the partnership will not involve Nvidia using Intel’s struggling manufacturing business, Intel Foundry Services (IFS).

The unit, which primarily makes Intel chips but opened to outside customers around 2022, still lacks a substantial external customer to make the business viable.

Nvidia reportedly tested Intel’s 18A manufacturing process but decided not to move forward, according to Reuters.

Analysts told Yahoo Finance that Intel’s future hinges on its upcoming processes — 18AP and 14A — and whether those will secure much-needed customers.