NEW YORK (AP) — Nvidia, the world's leading chipmaker, announced a new partnership on Thursday with struggling semiconductor company Intel.
Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release.
Nvidia also said it's investing $5 billion in the common stock of Intel, which has been struggling. The deal is subject to regulatory approvals.
The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.
In premarket trading, Intel shares soared 30%.
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