PORTLAND, Ore. — In a move that could reshape the global semiconductor industry, Intel and Nvidia — two giants with deep ties to Oregon — announced Thursday they are joining forces to develop custom technology for AI data centers and personal computers.
The partnership marks a rare collaboration between rivals and comes at a pivotal time for both companies, which together employ thousands in Oregon and carry global influence in the rapidly evolving world of artificial intelligence.
The Deal at a Glance
Under the agreement, Nvidia will invest $5 billion in Intel. In return, Intel will leverage its long-standing expertise in data center CPUs and personal computing chips to co-develop new products for Nvidia.
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Intel will create custom computer chips that Nvidia will integrate into its AI infrastructure platforms. In the personal computing market, Intel will build processors that incorporate Nvidia’s graphics and AI acceleration technologies.
“This is a big partnership,” Nvidia CEO Jensen Huang told reporters. “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 will address some $50 billion annual market.”
Oregon’s Role
Intel is Oregon’s largest private employer, with around 18,000 workers in Washington County, primarily in and around Hillsboro. The company’s manufacturing plants and research campuses are at the heart of the state’s tech economy.
Nvidia also has operations in Hillsboro, though on a smaller scale. Its ties to Oregon run through Huang, a graduate of Oregon State University, who often highlights his connection to the state.
Given both companies’ presence in the region, Oregon is poised to play an important role in the development — and possibly manufacturing — of the technologies born from the partnership.
Strengths Combined
At Thursday’s press event, Intel CEO Lip-Bu Tan emphasized how the collaboration marries the best of both companies.
“Nvidia is a clear leader in AI accelerated computing. Intel is a leader in the data center and client PC CPU,” Tan said. “This collaboration is built on the core strengths of both companies.”
Tan argued that working together positions Intel and Nvidia to lead in AI data centers, a market expected to expand dramatically as demand for generative AI and large-scale machine learning surges.
Intel’s Struggles and Rebuilding Efforts
The deal comes as Intel attempts to reclaim ground it lost in recent years. Once the undisputed leader of the global chip industry, Intel missed major opportunities in the smartphone market and fell behind in the race to build the most advanced AI semiconductors.
The company reported a $19 billion loss in 2024, compared to a $1.7 billion profit in 2023. To stem losses, Intel announced cost-cutting measures earlier this year, including plans to shed thousands of jobs and slow down manufacturing. In July, the company told Oregon officials it would eliminate nearly 2,400 positions in Washington County.
Bringing in Tan as CEO earlier this year signaled Intel’s determination to reverse course. Thursday’s announcement suggests Intel may now have a credible growth strategy by partnering with Nvidia rather than competing head-to-head.
Political and Economic Context
The partnership also comes against the backdrop of heightened political scrutiny over the semiconductor industry.
In August, the Trump administration brokered a deal to buy nearly $8.9 billion in Intel stock, a stake amounting to about 10% of the company. President Donald Trump has pressed U.S. firms to invest domestically and has leveraged trade deals to secure concessions from global chipmakers. Nvidia itself agreed to turn over 15% of its Chinese chip sales to the U.S. government amid concerns over the China market.
Still, both companies stressed that the White House had no involvement in Thursday’s deal.
“The Trump administration had no involvement in this partnership at all,” Huang said. “They would have been very supportive, of course.”
Huang said he briefed U.S. Commerce Secretary Howard Lutnick, who “was very excited, very supportive of seeing American technology companies working together.”
Analysts Weigh In
Industry experts described the deal as a lifeline for Intel.
“This is very positive for Intel,” said Ryuta Makino, a research analyst at Gabelli. “Intel now can have a growth driver in AI data centers by designing and potentially manufacturing custom x86 chips for Nvidia AI platforms.”
Makino emphasized that Intel will be able to innovate for Nvidia without carrying the full financial risks typically associated with pioneering new technology.
However, he cautioned that the announcement was focused on product development, not manufacturing. Nvidia has not committed to using Intel’s fabrication plants for chip production, leaving questions about how much of the deal will translate into manufacturing jobs in Oregon.
Market Implications
The partnership underscores the growing dominance of AI-driven computing across industries. With Nvidia valued at more than $4 trillion and Intel seeking stability after years of setbacks, the collaboration could accelerate development in areas ranging from cloud services to consumer PCs.
It also reflects a broader industry trend toward strategic alliances. With the costs of chip design and manufacturing skyrocketing, even giants like Intel and Nvidia are finding collaboration more efficient than going it alone.
Uncertain Local Impact
For Oregon, the deal raises both hope and questions. Intel’s Hillsboro operations have long been a cornerstone of the state’s economy, and any new investment in AI chip design could bolster the region’s status as the “Silicon Forest.”
But with recent layoffs still fresh, employees and local officials remain cautious. Without firm commitments to manufacturing or expansion in Oregon, the immediate benefits of the partnership may be limited to research and design.
Looking Ahead
Both companies cast the deal as a forward-looking strategy to seize market share in AI computing. With demand for data center capacity and AI-powered personal computing expected to grow exponentially, Intel and Nvidia say they are well positioned to lead.
“This is about the future of computing,” Huang said. “By working together, we’re building technology that will drive the next decade of innovation.”
For Intel, the partnership may mark the beginning of a comeback. For Nvidia, it offers an opportunity to deepen its dominance in AI by leveraging Intel’s infrastructure. And for Oregon, the deal underscores its enduring role at the heart of America’s semiconductor story.
