Nvidia buys stake in Intel: Difference between revisions
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On 18 September, 2025, [[Nvidia]] and [[Intel]] jointly announced in a press release, Nvidia's $5 | On 18 September, 2025, [[Nvidia]] and [[Intel]] jointly announced in a press release, Nvidia's $5 billion USD investment into Intel stock.<ref name=":0">{{Cite web |date=2025-09-18 |title=NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products |url=https://nvidianews.nvidia.com/news/nvidia-and-intel-to-develop-ai-infrastructure-and-personal-computing-products |url-status=live |archive-url=https://web.archive.org/20251105000000/https://nvidianews.nvidia.com/news/nvidia-and-intel-to-develop-ai-infrastructure-and-personal-computing-products |archive-date=2025-11-05 |access-date=2025-11-05 |website=NVIDIA Newsroom}}</ref> The deal was finalized on December 29, 2025. Both Nvidia and Intel develop GPUs for consumer and enterprise applications, making them competitors. As a result many have developed concerns over the persistence of Intel's GPU offerings and have branded the investment as Nvidia's attempt at furthering their monopoly by investing in their competitor. In December 2025, the FTC announced it had cleared the investment.<ref name=":1">{{Cite news |last=Bajwa |first=Arsheeya |date=2025-12-29 |editor-last=D'Silva |editor-first=Anil |title="Nvidia takes $5 billion stake in Intel under September agreement" |url=https://www.reuters.com/legal/transactional/nvidia-takes-5-billion-stake-intel-under-september-agreement-2025-12-29/ |url-status=live |access-date=2026-01-07 |work=Reuters}}</ref> | ||
==Background== | ==Background== | ||
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{{wplink|Intel|Intel Corporation}} is an American technology company that designs, manufactures and sells computer components and related products. It was founded on July 18, 1968 by Gordon Moore (of {{wplink|Moore's law}}), Robert Noyce, and investor Arthur Rock. The company is one of the world's largest semiconductor chip manufacturers.<!-- mention Intel stock plumetting --> | {{wplink|Intel|Intel Corporation}} is an American technology company that designs, manufactures and sells computer components and related products. It was founded on July 18, 1968 by Gordon Moore (of {{wplink|Moore's law}}), Robert Noyce, and investor Arthur Rock. The company is one of the world's largest semiconductor chip manufacturers.<!-- mention Intel stock plumetting --> | ||
==[ | == Nvidia buys stake in Intel == | ||
{{ | On 18 September, 2025, [[Nvidia]] and [[Intel]] jointly announced in a press release, Nvidia's $5,000,000,000 USD investment into Intel stock.<ref name=":0" /> Finalized on December 29, 2025, Nvidia purchased 214.8 million Intel shares at $23.28 per share.<ref>{{Cite news |last=Carroll |first=Shannon |date=Dec 29, 2025 |title=Nvidia’s $5 billion Intel bet just became official |url=https://qz.com/nvidia-intel-5-billion-deal-done-ai-partnership |url-status=live |archive-url=https://web.archive.org/web/20260102013658/https://qz.com/nvidia-intel-5-billion-deal-done-ai-partnership |archive-date=Jan 2, 2026 |access-date=Jan 7, 2026 |work=Quartz}}</ref> Both Nvidia and Intel develop GPUs for consumer and enterprise applications, making them competitors. In both sectors Nvidia holds the highest market share, surpassing 90%, dwarfing both [[AMD]] and [[Intel]] by magnitudes. | ||
Nvidia's investment into competitor Intel allows Nvidia to be able dictate the direction of the company and hence be able to prioritize profits over product quality. Nvidia could also potentially coerce Intel into gimping their products such as to make Nvidia's offerings seem more reasonable or worthwhile. Ultimately the investment is a conflict of interest, monopolistic in nature and not all beneficial to customers. | |||
In December 2025, the U.S. Federal Trade Commision (FTC) announced in a notice that U.S. antitrust agencies cleared the investment,<ref name=":1" /> despite it being anti-consumer and thus furthering Nvidia's monopoly. | |||
===[Company]'s response=== | ===[Company]'s response=== | ||
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{{Ph-I-ConR}} | {{Ph-I-ConR}} | ||
== See also == | ==See also== | ||
[[AMD]] | [[AMD]] | ||