Nvidia , the world's leading manufacturer of AI chips, and the most valuable company in the world with a $4.2 trillion market cap, announced on Thursday that it will invest $5 billion in competitor Intel, which has a comparatively lower ( $144.8 billion ) market value. The investment gives Nvidia a 4% stake in Intel.

The deal requires that Nvidia and Intel work together to create chips for personal computers and data centers. Intel's specialty is central processing units , or chips that act as the brain of a computer, handling different general-purpose tasks. Nvidia, on the other hand, focuses on making graphics processing units that can process large amounts of data for more specialized, intensive tasks like AI development, gaming, and video editing.

The two companies are

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