Nvidia Invests $5 Billion in Intel Following 10% Stake from Trump Administration

Nvidia, a top player in the semiconductor industry, has revealed plans to invest $5 billion in Intel while collaborating with struggling chip manufacturers on various products.

Following confirmation that the Trump administration has secured a 10% stake in Intel, Nvidia announced that it will collaborate with the company on custom data centers essential for artificial intelligence (AI) infrastructure and personal computer products.

Intel’s stock surged nearly 23% after market hours, marking the company’s largest single-day percentage gain since 1987. Nvidia’s stock also climbed by over 3%, enhancing its market valuation to $400 billion.

Nvidia plans to invest $5 billion in Intel common stock at a price of $23.28 per share, pending regulatory approval.

“This groundbreaking partnership combines two leading platforms, accelerating the computing stack with Nvidia’s AI capabilities and Intel’s CPUs within the extensive X86 ecosystem,” stated Jensen Huang, CEO of Nvidia. “Together, we will expand our ecosystem and lay the groundwork for the next era of computing.”

The companies announced their intention to “seamlessly integrate the architecture.”

For data centers, Intel develops custom chips that Nvidia utilizes in its AI infrastructure. For PC products, Intel manufactures chips that incorporate Nvidia technology.

This deal presents a crucial opportunity for Intel, a pioneering force in Silicon Valley that experienced decades of growth fueled by the personal computer surge but has struggled after failing to adapt to the mobile computing trend initiated by the iPhone’s 2007 launch.

In recent years, Intel fell further behind during the AI boom that propelled Nvidia to become the world’s most valuable company. Last year, Intel reported a loss of nearly $1.9 billion, followed by another $3.7 billion in the first half of this year, along with plans to reduce its workforce by a quarter by the end of 2025.

Conversely, Nvidia is experiencing significant growth, driven by its specialized chips that support the artificial intelligence trend. Graphics processing units (GPUs) have proven particularly efficient in developing advanced AI systems.

Nvidia is the second firm to invest billions in chip manufacturers this year. In August, Japan’s leading high-tech investment firm, SoftBank, announced a $2 billion investment in Intel for a 2% stake in the company. SoftBank’s involvement follows initial reports regarding the US government’s plans to invest in Intel.

Donald Trump has been striving to bolster the US semiconductor sector, previously threatening to implement 100% tariffs on imported chips. He also brokered an export agreement with Nvidia and competitor AMD, which permitted the sale of certain low-power AI chips to China.

Experts believe Nvidia’s recent investment in Intel could strengthen the position of major chip manufacturers and potentially provide the impetus needed for Intel to compete effectively in the AI arena.

“According to Wedbush’s tech analyst Dan Ives: [Nvidia’s] world is waiting for more sovereignty, with businesses lining up for the world’s most advanced chips, while everyone else pays a premium.”

Reports contributed by the Associated Press

Source: www.theguardian.com

Trump Claims Intel Will Provide US Government with a 10% Stake

Donald Trump and Secretary of Commerce Howard Lutnick have announced that the US government has secured a groundbreaking 10% stake in Intel through a partnership with struggling chip manufacturers. This marks another significant intervention by Corporate America’s White House.

Lutnick stated on X: “Big News: The United States now owns 10% of Intel, one of our nation’s leading technology firms. We extend our gratitude to Intel CEO @Lipbutan1 for negotiating fair agreements benefit Americans.”

Trump met with Lipbu Tang on Friday and posed for a photo with Lutnick. This move was prompted by the US president’s demand for Intel’s resignation regarding its ties with Chinese companies after a previous meeting between Tang and Trump earlier this month.

“He approached us to continue his efforts and ultimately committed $1 billion to the US, so we secured a billion,” Trump shared on Friday.

Although Trump did not detail the $10 billion sum, it approximately corresponds to the financial assistance Intel receives from the government under the Chips and Science Act to build a US chip manufacturing facility.

Intel’s investment is the latest in a series of extraordinary deals brokered by the US administration under Trump, including allowing AI chip giant Nvidia to sell H20 chips to China. Amd has similarly pursued a comparable transaction.

Additionally, the Department of Defense is poised to become the principal stakeholder in small mining companies, enhancing the production of rare earth magnets, with the US government negotiating specific veto rights and “golden shares” as part of a deal enabling Nippon Steel to acquire US steel.

The extensive range of US government interventions in corporate affairs is raising concerns among critics who argue that Trump’s measures will establish a new category of corporate risk.

This development follows a $2 billion capital infusion from SoftBank Group, a significant endorsement for a troubled US chipmaker now navigating a turnaround. Daniel Morgan, senior portfolio manager at Synovus Trust, mentioned that Intel’s challenges extend beyond the financial boosts from SoftBank or government profits.

“Without government backing and strong financial allies, it’s tough for Intel’s Foundry units to generate enough capital to keep expanding fabs at a reasonable pace,” he stated. “We need to catch up with TSMC [Taiwan Semiconductor Manufacturing Company] to be competitive technically.”

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The 10% stake is valued at approximately $10 billion at the current stock price. Lutnick noted this week that these shares do not confer voting rights, meaning the US government cannot dictate the company’s operational decisions.

Federal backing could provide Intel with more leeway to revitalize its struggling casting business, analysts observe, though it still faces weaknesses in its product roadmap and challenges in attracting customers to its new factories.

Tang, who took on a leading role at Intel in March, has the responsibility of reviving the iconic American chipmaker, which reported a loss of $18.8 billion in 2024—the first loss since 1986.

Source: www.theguardian.com

Intel Stock Surges Amid Crisis Concerns After Earnings Report

Intel’s shares increased by 7.4% following reports that the Trump administration is contemplating acquiring stock in a faltering US chip manufacturer.

According to Bloomberg, any potential government investment will be directed towards the development of Intel’s factory hubs in Ohio. This move aims to bolster the financial stability of chipmakers during a period when Intel is implementing job cuts as part of broader cost-reduction measures.

Discussions about this possible investment emerged from a meeting earlier this week between US President Donald Trump and Intel CEO Rip Bu Tang, which took place just days after Trump accused Tan of having connections with the Chinese Communist Party before resigning. Bloomberg indicated that Tan is likely to lead the chipmaker going forward.


In response to the Bloomberg article, White House spokesperson Kush Desai stated, “The dialogue regarding virtual transactions should be viewed as speculation unless formally announced by the administration.”

Despite this, the news triggered excitement among investors, with shares climbing by 7.4% on Thursday to $23.86 (£17.60), elevating the company’s market capitalization to $104 billion.

This move regarding Intel reflects the Trump administration’s ongoing efforts to intervene in significant private sectors. The President has consistently threatened to impose tariffs of up to 100% on imported semiconductors and chips.

Earlier this week, the US government also unveiled a deal involving advanced microdevices with chip manufacturer Nvidia, which commits to paying 15% of revenues derived from AI chip sales to China to the US government. Last month, the Department of Defense revealed that rare earth producer MP Materials would need $400 million in preferred stock.

However, investing in Intel represents a notable shift from Trump’s recent critical comments on the company’s leadership.

Trump expressed his thoughts on the True Social Media Platform last Thursday, stating, “The Intel CEO is exceedingly contradictory and must resign immediately. There’s no alternative to this problem. Thank you for your attention to this matter!”

His remarks came shortly after U.S. Republican Senator Tom Cotton sent a letter to Intel Chairman Frank Yearly regarding Tan’s investment and its connections to semiconductor companies linked with the CCP and its military faction, the People’s Liberation Army.

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In April, Reuters disclosed that Tan had invested in numerous Chinese high-tech firms, with at least eight connections to the People’s Liberation Army.

Cotton questioned Intel’s board regarding whether Tan divested these investments, raising concerns over Tan’s previous role at Cadence Design Systems, which was found to have sold products to China’s National University of Defense Technology, in breach of US export controls.

At that time, Intel remarked that both the board and CEO are “deeply dedicated to advancing US domestic and economic security priorities, making significant investments in line with the President’s agenda to prioritize America.” Intel has been manufacturing within the US for 56 years and expressed eagerness to maintain collaboration with the administration.

Intel was approached for a statement.

Source: www.theguardian.com

Intel’s struggles lead to resignation of CEO Pat Gelsinger | Intel

Intel CEO Pat Gelsinger has resigned, leading to David Zinsner and Michelle Johnston Holthaus being named interim co-CEOs. Despite an increased demand for semiconductor chips and improved profitability, Intel has struggled to keep up with its competitors.

Mr. Gelsinger, with a career spanning over 40 years, also stepped down from the board of directors. He joined Intel in 1979, serving as the first chief technology officer, and returned as CEO in 2021. Intel announced plans on Monday to search for a new CEO.

Recently, it was revealed that the Biden administration intends to reduce some of Intel’s $8.5 billion federal funding for computer chip factories nationwide. Sources familiar with the situation disclosed this information anonymously.

The reduction is partly due to the $3 billion Intel receives for supplying computer chips to the military. In March, Joe Biden announced a deal to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans.

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The changes in Intel’s funding are not linked to its financial performance or milestones, according to sources familiar with the grant. In August, the company announced a workforce reduction of 15%, affecting around 15,000 employees, as part of its efforts to enhance competitiveness against leading competitors like Nvidia and AMD. Unlike some rivals, Intel both designs and manufactures chips.

Mr. Zinsner is Intel’s executive vice president and CFO, while Mr. Holthaus has been assigned the new CEO position overseeing Intel Products, including the Client Computing Group, Data Center and AI Group, and Network and Edge Group.

Frank Yeary, the independent chairman of Intel’s board of directors, will serve as interim executive chairman.

“Pat’s tenure at Intel began crucially and his return in 2021 came at a pivotal time for the company,” Yeary stated. “As a leader, Pat has driven innovation throughout the company, particularly in cutting-edge semiconductor manufacturing.”

Source: www.theguardian.com

Intel reveals largest neuromorphic computer inspired by the brain at Hala Point

Hala Point neuromorphic computer is powered by Intel’s Loihi 2 chip

Intel Corporation

Intel has developed the world’s largest neuromorphic computer, a device that aims to mimic the behavior of the human brain. The company hopes to be able to run more advanced AI models than traditional computers can run, but experts say the device will not be able to compete with, let alone surpass, the cutting-edge. says there are engineering hurdles to overcome.

Expectations for neuromorphic computers are high because they are inherently different from traditional machines. While regular computers use a processor to perform operations and store data in separate memory, neuromorphic devices use artificial neurons for both storage and calculation, similar to our brains. To do. This eliminates the need to pass data between components, which can be a bottleneck in today’s computers.

This architecture has the potential to result in much greater energy efficiency, and Intel says its new Hala Point neuromorphic computer will solve an optimization problem that involves finding an optimal solution to a problem given certain constraints. It claims to use 100 times less energy than traditional machines when running. It also trains and runs AI models that use chains of neurons, similar to how a real brain processes information, rather than mechanically passing input through each layer of artificial neurons as in current models. New methods may also become possible.

Hala Point contains 1.15 billion artificial neurons across 1152 Loihi 2 chips, capable of 380 trillion synaptic operations per second. mike davis Despite this power, Intel says it takes up only six racks of space in a standard server case, which is about as much space as a microwave oven. Larger machines will also be possible, Davis said. “We built a system of this scale because, honestly, one billion neurons was a good number,” he says. “So there were no special technical engineering challenges that would cause us to stop at this level.”

No other existing machine can match Harapoint’s scale, but Deep South, a neuromorphic computer due for completion later this year, is said to be capable of 228 trillion synaptic operations per second.

The Loihi 2 chip is still a prototype that Intel has produced in small numbers, but Davis said the real bottleneck is the processing required to take a real-world problem, translate it into a format that can run on a neuromorphic computer, and run it. It is said to be in the software layer. process. This process, like neuromorphic computing in general, is still in its infancy. “Software is a big limiting factor,” he says. That means there’s still little point in building a large machine.

Intel has suggested that machines like Hala Point could create AI models that continuously learn, rather than having to be trained from scratch to learn new tasks like current models do. Masu.but james knight Researchers at the University of Sussex in the UK dismissed this as “hype”.

Knight points out that current models like ChatGPT are trained using graphics cards running in parallel, which means many chips can be used to train the same model. But since neuromorphic computers operate on a single input and cannot be trained in parallel, it could take decades to even initially train something like ChatGPT on such hardware. He says it’s expensive, let alone come up with a way to enable continuous learning once it’s up and running.

Although current neuromorphic hardware is not suitable for training large-scale AI models from scratch, Davis said that one day pre-trained models could be used to learn new tasks over time. He said he hopes it will be possible. “Although this method is still in the research phase, this is a kind of continuous learning problem that large-scale neuromorphic systems like Hala Point can solve in a very efficient way in the future. “It’s considered,” he says.

Knight said neuromorphic computers could solve many other computer science problems as the tools needed for developers to write software for these problems to run on their own hardware become more mature. We are optimistic that we can improve this and increase efficiency at the same time.

It may also offer a better path toward human-level intelligence, also known as artificial general intelligence (AGI), although many AI experts believe that large-scale language models that power things like ChatGPT I think it’s impossible. “I think it’s becoming less and less of a controversial opinion,” Knight says. “The dream is that one day neuromorphic computing will allow us to create brain-like models.”

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Source: www.newscientist.com

Unanswered Questions Surrounding Putin’s Plans for Russian Nuclear Weapons in Space, Says Intel

Despite its recent emergence, these technologies and concepts are not new.

The United States and the Soviet Union developed and tested anti-satellite weapons (ASAT) during the Cold War. Both nations also regularly utilized nuclear power in space.

As early as 1959, the United States initiated the development of anti-satellite missiles due to concerns about Soviet efforts to do the same. This led to a 1985 test launch by an F-15 fighter jet, which successfully destroyed a satellite by ejecting its payload at an altitude of 36,000 feet and hissing into orbit, carrying a deteriorating U.S. aircraft, according to the U.S. Air Force Museum.

A paper published by the Air Force’s Air University Press in 2000 stated that from 1969 to 1975, the U.S. government developed an anti-satellite system using existing nuclear missiles in “direct ascent” mode to destroy space targets.

In addition to nuclear weapons, the U.S. government placed its first nuclear-powered satellite into orbit in 1961. The Soviet Union similarly developed and deployed comparable technology that powered many satellites during that period.

History has demonstrated that these developments are not without risks. In 1978, a Soviet nuclear-powered satellite malfunctioned and fell from the sky, spreading radioactive debris over northern Canada.

However, what has not yet been publicly revealed is the existence of a Russian nuclear-powered satellite carrying weapons.

According to a 2019 technical essay published in The Space Review, nuclear-fueled satellites equipped with powerful jammers that can block communications and other signals over large areas for extended periods may be installed. Experts have responded to this week’s news.

Bowen, of the University of Leicester, stated that such a design would be “very expensive” and “waiting for something to go wrong could create a nuclear environmental disaster in orbit.”

Ultimately, while none of this technology is new, the actual implementation would certainly be considered an escalation, according to Bowen and Bugerin.

Some have questioned whether the disclosure is purely political in nature, rather than a military threat.

Kremlin spokesman Dmitry Peskovin suggested that the White House’s actions may be an attempt to manipulate Congress to vote on a funding bill that would provide new aid to Ukraine. He raised the possibility of a diversionary tactic from the other side.

Francesca Giovannini, executive director of the Atomic Stewardship Project at Harvard Kennedy School, noted that “Russia has long been attempting to develop weapons in space,” indicating potential misinformation or diversion tactics being employed.

Source: www.nbcnews.com