Nvidia has agreed to buy a $5 billion stake in Intel as part of a broader deal to together develop “multiple generations” of data center and PC products.

Nvidia will acquire the Intel stock for $23.28 per share, a slight discount on the companies previous trading price. According to Reuters , the deal would make Nvidia one of Intel’s largest shareholders, owning about 4% of the company. Intel shares were up as much as 30% in early trading on Thursday morning.

The companies will integrate their two architectures using Nvidia’s NVLink interface, which enables data and control code transfers between CPUs and GPUs. NVLink enables faster transfers between chips compared with other standards like PCI Express, which is crucial for AI applications, which require many GPUs to run together and

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