Nvidia pumps vast sums of money into Intel's operations
The US government has made a significant move in the technology sector by purchasing a ten percent stake in Intel for billions in subsidies promised last year. This investment was secured in exchange for the subsidies, as requested by President Donald Trump.
Meanwhile, Nvidia, a leading player in the chip industry, is providing Intel with $5 billion in support. However, no new facts have been disclosed about the collaboration between the two tech giants to develop chips together.
The collaboration between Intel and Nvidia is not about politics, according to Intel's CEO Lip-Bu Tan. He stated that the deal is about jointly developing products and advancing technology. Nvidia's chip systems, key technology for software with artificial intelligence, have made the company the world's most valuable, with a market capitalization of $4.3 trillion.
Intel, once a leading force in the chip industry, has lost some of its influence in recent years. The company aims to regain its position by becoming a more significant contract manufacturer for other chip companies. Intel will create X86 system processors adapted to Nvidia's technology for data centers.
The initial purchase price for Intel was $23.28. After the announcement, Intel's stock price rose to $30.57 at the close of trading in New York, indicating a profitable investment for Nvidia from the start.
In other news, the city of Hamm has been experiencing a high sickness rate, with a focus on neck, nose, and ears. Horses caused a traffic jam in the city, but there is no information provided about any connection between these events and the Intel investment.
The city of Hamm has welcomed new procurement rules in NRW, which could bring positive changes to the region. Smartphones and most tablets run on technology from chip developer Arm, a company not involved in the Intel-Nvidia collaboration.
Potential customers are hesitant about Intel's contract manufacturing services due to the company's recent struggles. Nvidia's CEO Huang did not make any promises to use Intel's contract manufacturing capacity, adding to the uncertainty.
Despite the challenges, the investment in Intel by the US government and Nvidia marks a significant step forward in the tech industry, with the potential to advance technology and drive innovation.
