On September 19, the Associated Press broke the news that NVIDIA made a public announcement on Thursday, revealing a staggering $5 billion investment in Intel. Following this, Jensen Huang, CEO of NVIDIA, and Lip-Bu Tan, CEO of Intel, delved into the strategic motivations underpinning this landmark deal during an online press conference.

As per the terms of the agreement, NVIDIA is set to acquire Intel shares at a price of $23.28 per share. The two tech giants will collaborate closely to develop bespoke chips tailored for data centers and personal computers. This partnership sent Intel's stock price soaring by as much as 33% in pre-market trading, reflecting investor enthusiasm.

The scope of this collaboration is extensive. Intel will take the lead in developing custom x86 CPUs specifically for NVIDIA in the data center realm. Additionally, Intel will also craft x86 system-on-chips that seamlessly integrate NVIDIA RTX GPUs, catering to the personal computing sector. This move is poised to revolutionize the tech landscape, merging NVIDIA's cutting-edge graphics prowess with Intel's robust processing capabilities.