Nvidia is investing $5 billion in Intel, forming a partnership to develop chips for PCs and data centers. Intel's stock surged 23% following the announcement, boosted further by recent US government and SoftBank investments. This collaboration is seen as a significant development in the AI sector, strengthening the US's position in the global AI race. The deal comes amidst Intel's recent struggles and follows unusual government involvement in the company.

Prepared by Christopher Adams and reviewed by editorial team.