Nvidia says it will invest $5bn into Intel, throwing its heft behind the struggling US chip company, but has stopped short of giving Intel a crucial manufacturing deal.

Nvidia, which is based in Santa Clara, California, announced the investment on Thursday.

The pact, which also includes a plan for Intel and Nvidia to jointly develop personal computer and data centre chips, represents a potential risk to Taiwan’s TSMC. TSMC currently manufactures Nvidia’s flagship processors, a business that the world’s most valuable company could one day extend to Intel. AMD, which competes with Intel for supplying chips to data centres, also stands to lose because of Nvidia’s backing of Intel.

Nvidia, whose must-have chips are powering a global artificial intelligence boom, said in a statement it will

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