China’s Huawei Challenges Nvidia With AI Superclusters
At its annual Shanghai event, Huawei revealed new AI infrastructure built on Ascend chips, with claims of beating Nvidia’s top systems by 2027.
Nvidia, the world’s leading chipmaker, announced Thursday a $5 billion investment in Intel, alongside a broad collaboration aimed at advancing artificial intelligence infrastructure and PC products.
As part of the deal, Nvidia will purchase Intel common stock at $23.28 per share, pending regulatory approval. The move follows the U.S. government’s recent acquisition of a 10% stake in Intel, signaling strong efforts to revitalize the struggling chipmaker.
The partnership will see Intel producing custom chips for Nvidia’s AI data center platforms and integrated PC processors featuring Nvidia technology. Nvidia CEO Jensen Huang called the deal “a fusion of two world-class platforms,” noting it combines Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem.
Markets reacted swiftly: Intel shares surged 25%, marking their biggest one-day jump in decades, while Nvidia gained 2%.
The agreement offers Intel a crucial lifeline after years of decline. Once dominant in personal computing, Intel stumbled during the mobile revolution and has since lagged behind in AI, losing $19 billion in 2024 and another $3.7 billion in early 2025. The company also plans to cut a quarter of its workforce by year’s end.
Analysts view the deal as transformative. Wedbush’s Daniel Ives called it a “game-changer” that places Intel back in the center of the AI race. Coupled with Washington’s support, he described the moment as a “golden few weeks for Intel after years of pain.”
Meanwhile, Nvidia’s GPUs remain the cornerstone of the AI boom, making it the world’s most valuable company. The collaboration comes as China pushes to reduce reliance on U.S. chips — with Beijing restricting Nvidia sales and Huawei expanding its own AI hardware.
While the partnership outlines chip development, a manufacturing deal has not yet been finalized. If Nvidia were to gain access to Intel’s foundries, it could challenge Taiwan Semiconductor Manufacturing Company, which currently produces Nvidia’s leading processors.
At its annual Shanghai event, Huawei revealed new AI infrastructure built on Ascend chips, with claims of beating Nvidia’s top systems by 2027.
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