The investment is the latest in a string of deals that have bolstered Intel, which has struggled in the AI race.

Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and will collaborate with the struggling semiconductor company.

Mr Huang is in a celebratory mood. Hobnobbing with kings and presidents is one sign of his extraordinary ascent, thanks to Nvidia’s pivotal role in generative artificial intelligence ( AI) that has made it the world’s most valuable company, worth $4.3trn. He is also using his position to play a shrewd political game.

Nvidia's $5 billion investment in Intel is a double-edged sword for Asian chipmakers such as TSMC as an Intel revival could ease U.S. scrutiny on its foreign rivals although it can boost competition in the long term.

Nvidia Corp. agreed to invest $5 billion in Intel Corp. and said the two will co-develop chips for PCs and data centers, a surprise move to help prop up an ailing archrival that sent Intel shares soaring.

Nvidia says it will invest $5 billion in Intel; Treasury yields rally

Nvidia has spent over $900 million to hire Enfabrica CEO Rochan Sankar and other staff at the artificial intelligence hardware startup and to license the company's technology, CNBC reported on Thursday.

Shares of Intel rose 33% Thursday after NVIDIA announced it will make a $5 billion investment in the company to make NVIDIA's data center and PC chips.

At a keynote at its Huawei Connect conference on Thursday, Shenzhen, China-based Huawei announced new SuperPoD Interconnect technology that can link together up to 15,000 graphics cards, including Huawei’s Ascend AI chips, to increase compute power.

There is also the UALink Consortium, which AMD helped found as an open standard alternative to Nvidia's NVLink. If adopted, this could break Nvidia's lock on multi-GPU systems and give customers more flexibility to mix and match vendors.