Nvidia, the global leader in advanced chip technology, revealed on Thursday that it will invest $5 billion in Intel as part of a strategic partnership aimed at strengthening artificial intelligence (AI) infrastructure and personal computing.

The deal involves Nvidia purchasing Intel’s common stock at $23.28 per share, pending regulatory approval.

According to Nvidia, the two companies will jointly develop custom-built data centers to power AI systems and collaborate on PC products.

Nvidia CEO Jensen Huang described the move as a “historic collaboration,” saying it will combine Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the x86 ecosystem, paving the way for “the next era of computing.”

For Intel, the partnership is a major boost. Once a dominant force in Silicon Valley, Intel lost ground after failing to adapt to the smartphone revolution and later struggled to keep pace in the AI-driven semiconductor race. The tie-up with Nvidia could provide much-needed momentum as the company seeks to regain relevance in the industry.

Following the announcement, Intel’s shares skyrocketed by 30% in premarket trading, while Nvidia stock rose by about 3%.