Bloomberg Tech

Episode: US Government’s Intel Stake Worth $14B After Nvidia Deal
Date: September 18, 2025
Hosts: Caroline Hyde (New York), Ed Ludlow (San Francisco)

Overview

This episode explores Nvidia’s landmark $5 billion investment in Intel, examining the implications for the chip sector, the US government's strategic stake in Intel, and broader market reactions. The hosts also cover breaking news about Disney pulling “Jimmy Kimmel Live” after controversial remarks, Meta’s unveiling of AI-powered wearables, and Via and Waymo’s partnership for autonomous transit. Industry experts and company executives provide rich analysis on these emerging tech stories.

Key Discussion Points

1. Nvidia’s $5 Billion Investment in Intel: Industry and Political Significance

[01:18–05:48, 25:48–30:47]

• Deal Structure and Impact:

  • Nvidia is investing $5B in Intel and co-developing chips for PCs and data centers.
  • Intel stock soared 25%, adding $30 billion in market cap, spurred by both the Nvidia announcement and political support.
  • The US government’s 10% stake in Intel is now worth $14 billion, a $4.9 billion gain from the deal’s announcement.

• Intel’s Position and Benefits:

  • Bloomberg chip expert Ian King: "What intel is getting here is basically a stronger PC product. It's going to get access to graphics chips…that will make it stronger in the market for laptops and desktops…on the flip side, it's getting some access…to Nvidia's runaway business in the data center." [02:39]
  • Access to Nvidia’s accelerators could help Intel regain ground in data center AI, a market where it lags.

• Nvidia’s Motives:

  • Ian King: “They want to be able to go to the datacenter market, to that customers and say, hey, look, choice is everything. If you don't want our in house CPUs, go with Intel.” [03:25]
  • Political tailwinds: With the US government’s direct interest and financial support, the partnership aligns with “re-shoring” and national tech priorities.

• Limits and Manufacturing:

  • The partnership is more about co-development than massive new manufacturing—Intel isn’t immediately getting orders to fabricate Nvidia chips.
  • Ian King: “Intel needs customers for those factories…Its business on its own isn't enough to sustain development.” [04:18]

2. Shareholder and Market Reactions: Winners and Losers

[06:42–12:10, 29:53–30:59]

• Pressure on AMD and ARM:

  • Jordan Klein (Mizuho Americas): “This is bad for AMD. This is putting pressure on ARM because now Intel’s x86 is working with Nvidia.” [06:42]
  • Investors care most about data center chips; AMD has been winning here, but the Intel-Nvidia deal makes Intel more credible.

• ARM and SoftBank Strategy:

  • SoftBank, which heavily backs ARM, is “spreading bets”—owning a stake in Intel enhances their industry position.
  • “This definitely strengthens the domestic leading logic supplier which is intel…over time helps Nvidia broaden their bets as well within the data center." [08:22] —Jordan Klein

• Architecture Competition and Flexibility:

  • Nvidia now able to offer x86 CPU server processors (not just ARM-based), giving customers flexibility and intensifying competition.
  • “As much as intel has struggled, they still have the largest market share of server chips in the data center. It's just they're losing a lot of that.” [09:41] —Klein

• Investor Sentiment:

  • Many funds underweighted Intel—now must decide whether to buy at a big premium. “If you don't own it and it's up 30%, how long do you want to wait? If it doesn't come back you may have to just start buying it.” [11:22]

• Broader Semi Rally:

  • The whole sector (except AMD and ARM) rallies, including memory and chip equipment makers, due to AI model demand.
  • Klein: “This is because inferencing demand…is increasing, that's putting added pressure on capacity…need more memory, more compute, more tools.”

3. Geopolitical Context and US Tech Strategy

[25:48–29:21]

• Political Signaling:

  • The timing of the Nvidia/Intel announcement coincides with President Donald Trump’s tech forum in London, signaling US intentions to support domestic chipmaking.
  • “This is a shot in the arm not only for Intel, the company, but also for President Donald Trump’s vision when it comes to AI...” [25:48] —Mike Shepherd

• China and AI Competition:

  • US restrictions limit Nvidia’s expansion in China, while Huawei announces a competitive cluster chip strategy to challenge Nvidia’s global dominance.
  • “When you put [Huawei’s chips] together in large clusters, that’s where they gain ground…This is how China will compete with the United States for supremacy in artificial intelligence.” [27:52] —Shepherd

4. Breaking News: Disney Pulls Jimmy Kimmel After FCC Pushback

[15:03–19:38]

• Event Timeline:

  • Jimmy Kimmel suspended indefinitely after controversial remarks on the killing of Republican activist Charlie Kirk.
  • Rapid escalation after FCC Chair Brendan Carr publicly criticized Kimmel, and major station owner Nexstar pre-empted the show.
  • Lucas Shaw (Bloomberg): "It was really after Carr's comments and then Next Star's pressure that Disney acted.” [15:36]

• Legal and Political Fallout:

  • Disney has not announced if Kimmel’s show is cancelled permanently.
  • FCC unlikely to revoke broadcasting licenses, though “this administration has been very aggressive in going after the media…” [17:01]
  • The episode highlights media politicization and the increasing difficulty for media companies to navigate political threats from both sides.

5. Meta’s New AI Wearables

[32:12–39:43]

• Product Launch:

  • Mark Zuckerberg unveils Meta Ray-Ban displays, $800 smart glasses with AI features, messaging (killer use-case), and neural EMG wristband for gesture control.
  • Chris Cox (Meta CPO): “We’re starting with something that’s really, really nice…messaging, I’d say, is going to be the most useful [feature] to start.” [35:09]

• Consumer Market Reactions:

  • Analysts are split—some see it as “early for mass adoption”; others, as a “must-have”.
  • The device can be fitted with prescription lenses and will support WhatsApp and Instagram Reels.

• AI-Driven Features:

  • Live translation, conversation focus (filter noise in crowded spaces), creative tools for content.
  • “AI is going to make it a lot easier [for users] to create content…and view the content we create for each other.” [39:05] —Cox

• Supply Chain Transparency:

  • Some manufacturing in China, but Meta aims for broad assembly sources.

6. Via and Waymo: Autonomous Public Transit Partnership

[41:24–45:57]

• Partnership Details:

  • Via partners with Waymo to launch autonomous rides for public transit in Chandler, AZ, aiming to enhance efficiency and accessibility for underserved groups.
  • Daniel Ramon (Via CEO): “We can leverage the autonomous vehicles of Waymo…to support service during peak hours…” [41:58]

• Market Impact:

  • Waymo expands its rider base, including low-income, seniors, and people with disabilities, at lower public pricing.
  • “This is a great opportunity, I think, to expand autonomous vehicles and provide…advanced technology to folks who typically may not have access…” [42:25]

• Broader Adoption:

  • Arizona leads in robo-taxi deployment; Via’s model positions AV tech for hundreds of public transit systems.
  • Emphasis on helping cities “do more with less” amidst budget pressures.

Memorable Quotes

"The reason Silicon Valley is called Silicon Valley is because of Intel. But nowadays a quarterly revenue number from Nvidia basically equals a yearly revenue number from Intel."
— Caroline Hyde [04:47]

"Choice is everything…That allows them [Nvidia] to present a more ‘we are the world’ approach to a market where they are extremely dominant."
— Ian King [03:25]

"If you don't own [Intel] and it's up 30%, how long do you want to wait? If it doesn't come back you may have to just start buying it."
— Jordan Klein [11:22]

"This is a shot in the arm not only for Intel, the company, but also for President Donald Trump’s vision when it comes to AI and also the government’s own investment in Intel."
— Mike Shepherd [25:48]

“We’re starting with something that’s really, really nice…messaging, I’d say, is going to be the most useful [feature] to start.”
— Chris Cox (Meta) [35:09]

"It seems unlikely, but you never really know with this administration. They've been very aggressive in going after the media, often in cases that most legal scholars think don't have a lot of foundation."
— Lucas Shaw [17:01]

Important Timestamps

• Nvidia & Intel deal summary & impact: [01:18–05:48]
• Jordan Klein (Mizuho) on winners/losers: [06:42–12:10]
• Political/geopolitical context (US, China, AI chips): [25:48–29:21]
• Disney pulls Jimmy Kimmel after FCC pressure: [15:03–19:38]
• Meta Wearables: product and strategy: [32:12–39:43]
• Via & Waymo – autonomous transit partnership: [41:24–45:57]

Flow & Tone

The episode maintains Bloomberg’s signature brisk, data-driven, and insightful tone, blending expert interviews with market context and live industry updates. Speakers are candid, frequently offering both analytical and practical perspectives, and there’s a focus on the interplay between technology, policy, and business.

Takeaways for Non-Listeners

If you missed the episode:

• Nvidia’s $5B investment is a lifeline for Intel, adds pressure on AMD/ARM, and boosts the US government’s stake.
• The move reflects market, tech, and geopolitical strategies, with shifting alliances and intensified competition.
• Disney’s rapid action against Jimmy Kimmel spotlights the volatile, politicized media landscape.
• Meta pushes consumer AI wearables forward, betting on messaging and translation as killer features.
• Via and Waymo’s partnership aims to democratize AV access for public transit users, especially underserved communities.

This is a must-listen episode for anyone following tech industry power plays, the evolving chip war, and the next wave of AI-driven products and regulation.