Chipmaker Intel Corporation ended 22.8% higher at $30.57 on Thursday, on the back of the announcement of a $5 billion investment by Nvidia.

Jensen Huang-led Nvidia announced the two companies will be jointly developing custom data centres and PC products across hyperscale, enterprise and consumer markets.

“NVIDIA will invest $5 billion in Intel’s common stock at a purchase price of $23.28 per share. The investment is subject to customary closing conditions, including required regulatory approvals,” the AI computing giant said in a statement.

Meanwhile, Nvidia closed at $176.24, up by 3.49% from its previous close.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem. Together, we will expand our ecosystems and lay the foundation for the next era of computing,” said Huang in a statement.

Intel will develop NVIDIA-custom x86 CPUs for data centres, which NVIDIA will incorporate into its AI infrastructure platforms and make available to customers. In personal computing, Intel will design and supply x86 system-on-chips (SOCs) that integrate NVIDIA RTX GPU chiplets. These x86 RTX SOCs will support a variety of PCs requiring combined CPU and GPU performance.

“Intel’s x86 architecture has been foundational to modern computing for decades — and we are innovating across our portfolio to enable the workloads of the future. Intel’s leading data centre and client computing platforms, combined with our process technology, manufacturing and advanced packaging capabilities, will complement NVIDIA’s AI and accelerated computing leadership to enable new breakthroughs for the industry,” said Lip-Bu Tan, CEO, Intel, in a statement.

The collaboration will also focus on connecting NVIDIA and Intel architectures through NVIDIA NVLink, aligning NVIDIA’s AI and accelerated computing capabilities with Intel’s CPU technologies and x86 ecosystem to provide advanced solutions for users.

“NVIDIA and Intel Corporation set out to create products that helps the industry and all of our customers who innovate with our technologies. We challenged ourselves with a single goal, combine the best technologies from both companies and create a family of products to revolutionize data center and PC computing. Thank you to the small group of employees from both sides who worked tirelessly for the past few months to make this happen,” wrote Greg Ernst, Chief Revenue Officer, Intel in a LinkedIn post.

This investment comes just days after the Donald Trump-led U.S. administration picked up a 10% stake in Intel for an $8.9 billion investment.