NVIDIA and Intel Forge Strategic Partnership to Develop Custom AI and PC Chips

NVIDIA and Intel Forge Strategic Partnership to Develop Custom AI and PC Chips

December 29, 2025

In a landmark move set to reshape the competitive landscape of the semiconductor industry, NVIDIA Corporation and Intel Corporation announced a strategic collaboration on Monday. The partnership aims to co-develop multiple generations of custom processors for data center and personal computing markets, signaling a significant alignment between two of the sector's most influential players in the era of artificial intelligence.

The core of the agreement involves Intel developing custom x86 central processing units (CPUs) specifically for NVIDIA's data center platforms. NVIDIA will integrate these CPUs into its AI infrastructure solutions for enterprise customers. For the PC market, the collaboration will yield new x86 system-on-chips (SoCs) that incorporate NVIDIA's RTX GPU chiplets, targeting high-performance consumer and professional computing segments. The companies stated that a key technical focus will be on tightly coupling their architectures using NVIDIA's high-speed NVLink interconnect technology.

To solidify the alliance, NVIDIA disclosed a substantial equity investment in Intel, committing $5 billion to purchase Intel stock at $23.28 per share. The partnership is positioned to expand both companies' ecosystems, combining NVIDIA's leadership in AI and accelerated computing with Intel's extensive x86 CPU footprint to drive next-generation computing solutions.

Industry analysts view this collaboration as a strategic counterbalance to other vertically integrated chip designers and a potential accelerator for AI adoption across cloud and edge environments. By leveraging Intel's manufacturing and x86 design capabilities alongside its own GPU and AI software stack, NVIDIA can offer more integrated and potentially cost-effective solutions to its data center clients. For Intel, the deal represents a major design win and a vote of confidence in its product roadmap, providing a stable revenue stream and deeper integration into the AI hardware ecosystem.

Following the announcement, NVIDIA's stock saw a slight pre-market adjustment, trading 1.17% lower at $188.30 on the Nasdaq.

Source: Nasdaq