NVIDIA Corporation has taken a US$5 billion (A$7.5 billion) stake in its smaller rival computer chip maker Intel Corp, formalising a deal announced more than three months ago.
Intel said it had completed the issuance and sale of 214,776,632 shares at $23.28 each to the world’s largest company.
In a filing with the Securities and Investments Commission, Intel said the private placement was pursuant to a Securities Purchase Agreement dated 15 September between the two companies.
United States antitrust agencies had cleared the investment in Intel, according to a notice posted by the U.S. Federal Trade Commission in December.
The announcement of the investment, which was seen as a financial rescue for Intel after strategic mistakes left it weak, had put a rocket under the Intel price, which soared almost 23% at the time.
The share purchase was disclosed with the news that the two companies would work together to develop ratification intelligence (AI) infrastructure and personal computing products.
Intel (NASDAQ: INTC) shares closed 48 cents (1.33%) higher on Monday (Tuesday AEDT) at $36.68, giving it a market value of $174.960 billion.
NVIDIA (NASDAQ: NVDA) shares ended $2.31 lower at $188.22, capitalising the leading AI chip manufacturer at $4.57 trillion.
