Nvidia (NVDA), the world's largest public company by market cap, said it will invest $5 billion in Intel (INTC) and work with the chipmaker on developing custom data-center and PC products as artificial intelligence becomes more pervasive.

The Santa Clara, California-based maker of the graphic processing units (GPUs) that underpin AI computing will buy shares of its neighbor at $23.28 each, 6.5% lower than Wednesday's closing price of $24.90, according to an announcement on Thursday.

While Nvidia is known for its GPU production, Intel was a leader in developing microprocessors and entered public consciousness as the provider of central processing units (CPUs) that drove IBM-compatible microcomputers. Its fortunes have declined as AI, with its intensive computing requirements, has taken r

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