NVIDIA has today announced it will invest $5 billion in Intel as part of a new collaboration between the two companies. In a statement, NVIDIA said it would work with its ailing rival to “jointly develop multiple generations of custom data center and PC products.”

Intel shares soared on Thursday after the company announced a partnership with Nvidia, which will buy $5 billion of Intel stock.

Intel and Nvidia teaming up to make APUs. I have now, officially, seen everything. That's right, peeps, Intel and Nvidia have released a joint statement revealing plans to work together to build new computing products based on Intel's x86 CPUs and Nvidia's GPUs.

Intel says it will still be making new Arc GPUs after it announced a strategic partnership with NVIDIA for the future of its data center, consumer chips.

After the deeply bearish market reaction to Intel's costly investments and struggling product development, the Nvidia-powered range of custom chips could spark a terrific turnaround. Investors sure expect something big -- Intel's stock jumped to a new 52-week high on the news, more than 71% above the recent multiyear lows.

Intel and Nvidia have quietly spent the past year co-developing custom x86 processors and SoCs for data center and client PCs with deep architectural collaboration across three joint teams.

"At the heart of this reinvention is Nvidia’s CUDA architecture. This historic collaboration tightly couples Nvidia’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem - a fusion of two world-class platforms. Together, we will expand our ecosystems and lay the foundation for the next era of computing.”

During a press conference yesterday, Nvidia CEO Jensen Huang explained: "The two technology teams have been discussing and architecting solutions now for probably coming up to a year, and the two architecture teams—well, it's three architecture teams—are working across, of course, the CPU architecture, as well as product lines for server and PCs."