In this provided photo, Intel's High Numerical Aperture Extreme Ultraviolet lithography tool in a clean room at Intel's campus in Hillsboro, Ore., in April, 2024.
Courtesy of Intel Corporation
Two major computer chip companies with significant footprints in Oregon plan to develop technology for data centers and personal computers in a rare partnership.
Nvidia, the world’s first $4 trillion company, thanks to its leadership in artificial intelligence, is investing $5 billion in chipmaker Intel. In turn, Intel plans to use its expertise in data centers and personal computing to help develop new products for Nvidia. The companies announced the partnership on Thursday.
Intel is Oregon’s largest employer with around 18,000 workers in and around Hillsboro. Nvidia also has a presence in Hillsboro, and CEO Jensen Huang is a graduate of Oregon State University.
Huang told reporters Thursday that the AI data center market has a bright future, and the two companies are in the right place to capitalize on it.
“This is a big partnership,” Huang told reporters Thursday. “We think it’s going to be fantastic for Intel, it’s going to be fantastic for us, and we’re building revolutionary products that’s going to address some $50 billion annual market.”
For data centers, Intel will create custom computer chips that Nvidia will use in its AI infrastructure platforms. For personal computing products, Intel will build chips that also include Nvidia technology.
“This collaboration is built on the core strengths of both companies,” Intel CEO Lip-Bu Tan said during Thursday’s press conference. “Nvidia is a clear leader in AI accelerated computing. Intel is a leader in the data center and client PC CPU (central processing units).”
Tan said the collaboration brings the best of both companies together to be an industry leader, especially when it comes to AI data centers.
Intel used to be the world’s leading chipmaker, but fell behind in the race to provide chips for smartphones, and faltered again as companies competed to produce semiconductors for artificial intelligence. The company reported a loss of nearly $19 billion last year, after recording a $1.7 billion profit in 2023.
Intel brought on Tan as CEO to help the company regain its dominance in the technology market. Since Tan took over earlier this year, the company has announced it would slow down manufacturing and shed thousands of jobs.
In July, the company told Oregon officials it was cutting nearly 2,400 positions from its facilities in Washington County.
In August, the Trump Administration brokered a deal to buy $8.9 billion in Intel common stock, a nearly 10% stake in the company. President Donald Trump has solicited commitments from other businesses to develop and invest in the U.S., or to make deals with the U.S. government. Nvidia agreed to give 15% of its Chinese chip sales to the U.S. government after Trump expressed concern over the deal.
“The Trump administration had no involvement in this partnership at all,” Huang from Nvidia said. “They would have been very supportive, of course.”
Huang said he was met with enthusiasm when he told U.S. Commerce Secretary Howard Lutnick about the deal on Thursday.
“He was very excited, very supportive, of seeing American technology companies working together,” Huang said.
It’s unclear how Intel’s partnership with Nvidia will affect Oregon or technology manufacturing more broadly.
The deal announced was focused on developing products and Nvidia has not committed to using Intel as a chip manufacturer, according to Ryuta Makino, research analyst with investment firm Gabelli.
Still, the deal is “very positive” for Intel, Makino said.
“Intel then can now have a growth driver in AI data centers by designing and potentially manufacturing custom x86 chips for Nvidia AI platforms,” Makino said in an email to OPB.
Makino said the move allows Intel to develop the technology for Nvidia, without the risk typically associated with innovation.
The Associated Press contributed reporting to this story.
