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Nvidia, the world’s leading chipmaker, announced on Thursday that it’s investing $5 billion in Intel and will collaborate with the struggling semiconductor company. Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment, which is subject to regulatory approvals, comes a month after the U.S. government took a 10% stake in Intel.

Nvidia CEO Jensen Huang called it “a fusion of two world-class platforms” that combines Intel’s strength in making conventional computer chips, known as CPUs, that power most laptops, with Nvidia’s focus on the specialized graphics chips that are critical for artificial intelligence. “This partnership is a recognition that computing has fundamentally changed,” Huang told reporters Thursday. “The era of accelerated and AI computing has arrived.”

Intel shares jumped nearly 23%, its biggest one-day percentage gain since 1987. Nvidia shares added more than 3%.

Nvidia deal and U.S. backing give Intel a much-needed boost

For data centres, Intel will make custom chips that Nvidia will use in its AI infrastructure platforms…

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