Intel has completed the sale of a $5 billion equity to Nvidia, officially finalising a high-profile deal announced earlier this year.
The company confirmed it closed the private placement on December 26 after regulatory clearance, making Nvidia a 4% equity holder in Intel.
As per deal, the AI streaming giant bought 214,776,632 Intel shares at $23.28 per share. The investment offers Intel with a major cash infusion and marks a rare strategic alignment between two longtime competitors in the semiconductor industry.
Nvidia’s buy-in price reflects a 36% discount to Intel’s prior closing price, highlighting the leverage held by Nvidia amid its position in the AI chip market.
The deal drew a restrained response from investors, with Nvidia; stock down nearly 1.7% early on and Intel trading largely flat.
Analysts mentioned that while the headline impact has faded, Intel faces immense pressure to convert the partnership into tangible results.
The deal does not grant Nvidia special governance or information rights beyond those of a typical shareholder, as per the Intel’s filings
The company also secured regulatory approval in the starting of December, with the U.S. Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period on December 18.
Nvidia CEO Jensen Huang previously called the collaboration a “historic partnership,” underscoring joint work across CPU architecture and server and PC product lines
