👉 Background: Nvidia has rapidly grown since its founding in 1993 - from designing GPU chips for gaming devices to the world’s most valuable company worth over $4 trillion USD.

‍👉 What happened: Now, Nvidia will invest $5 billion USD into Intel by buying common stock and this will give Nvidia just below a 5% stake in its frenemy. The two companies will co-develop chips for PCs and data centres:

• Intel will use Nvidia’s graphics tech
• And Nvidia will be using Intel’s CPUs in some AI systems

‍👉 What else: A few moments later, Intel’s shares jumped as much as 26% on the news. And that is a rare win for Intel who has been losing ground to AMD, Nvidia, and TSMC.

‍What's the key learning?

‍💡Sometimes enemies become teammates when survival’s on the line. For decades, Intel looked down on Nvidia as a niche player for those gaming nerds, but Nvidia’s dominance in AI has flipped the power balance.

💡In fact, as recently as 2022, Intel had revenue that was double Nvidia’s… but now Nvidia nearly makes more per quarter than Intel does in a WHOLE YEAR.

💡While Nvidia had a 92% share of the GPU market in the first quarter of 2025 in GPUs, Intel still has dominance and scale in CPUs, as well as manufacturing. So Intel is teaming up with its former rival to regain relevance so that they dominate in GPUs and CPUs together.