Intel's new partnership with Nvidia should benefit the struggling chipmaker in many ways.

There's an old saying: If you can't beat them, join them. That's exactly what Intel ( INTC -0.98% ) appears to have done in its latest deal with Nvidia ( NVDA 1.10% ) . For years, Intel has struggled to remain relevant in an industry dominated by artificial intelligence .

But Intel's latest deal could make it the next big AI stock . Understanding the details of the partnership will be critical for shareholders in Intel and Nvidia alike.

Two things to understand about Intel's deal with Nvidia

Last month, Nvidia agreed to invest $5 billion in Intel . This gave it a roughly 4% stake in the company. This investment followed the U.S. government taking a 9.9% stake in Intel earlier

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