Nvidia took a cue from the U.S. government on Thursday, acquiring a $5 billion stake in Intel. Last month, President Trump announced that the U.S. government was also making a $9 billion investment in Intel, meaning that now Nvidia and the United States are among Intel’s largest shareholders.

All told, it’s a major Silicon Valley shakeup that could have wide-ranging effects, especially as the AI race continues to heat up. In fact, the AI arms race is at the center of the new partnership, as the two will jointly develop chips for both personal computers and data centers.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem—a fusion of two world-class platforms,” said NVIDIA founder and CEO Jensen Huang in a s

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