The deal comes just a month after the U.S. government took a 10 percent stake in Intel to shore up domestic technology manufacturing. Intel's shares soared nearly 23 percent on the news, their most significant one-day jump since 1987, while Nvidia's shares rose more than three percent. The surge also lifted the value of the U.S. government's Intel stake to $13.2 billion, up $2.5 billion since Nvidia's announcement. Intel will design custom chips for Nvidia's AI infrastructure in data centers, while in the PC market, Intel will produce processors that incorporate Nvidia technology. Intel's new CEO, Lip-Bu Tan, speaking alongside Huang, said he has been in talks with Nvidia since March.