What’s Behind Nvidia’s $5 Billion Bet on Intel

Summary

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WSJ What’s News – What’s Behind Nvidia’s $5 Billion Bet on Intel

Date: September 18, 2025
Host: Alex Osola
Guest Reporters: Amrith Ramkumar, Lydia Wheeler, Imani Moise

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Episode Overview

This episode dives deep into Nvidia's surprising $5 billion investment in Intel, exploring the business and political context behind the move, including US-China tech relations and implications for both chipmakers. The show then pivots to major headlines: the Trump administration’s challenge to Federal Reserve Governor Lisa Cook’s tenure, American Express's bold platinum card revamp targeting affluent customers, and updates from President Trump’s state visit to the UK.

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Key Discussion Points and Insights

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1. Nvidia’s $5 Billion Investment in Intel

Segment starts: [00:29]

• Breaking News: Nvidia announced a $5 billion investment in Intel, buying shares at a discount, sparking a 20% surge in Intel’s stock.
• Context:
  • The move follows the U.S. government’s recent 10% stake in Intel.
  • Nvidia aims to partner with Intel for CPU (central processing unit) development, building on Intel’s x86 architecture and high-end PC market presence.
• Political Motive:
  • Nvidia seeks favor with the Trump administration, hoping to continue exporting advanced chips (based on “black hole architecture”) to China, which is central to ongoing US-China trade/tariff discussions.
  • “Jensen Huang, Nvidia's CEO, really wants the Trump administration to allow exports of one of their chips to China... and is one of the people trying to do everything he can to get into his good graces.” — Amrith Ramkumar [01:52]
• Strategic Motive:
  • Nvidia, dominant in GPUs for AI/data centers, seeks to expand into high-end PC CPUs.
  • The deal signals alignment with government priorities amid heightened US-China tensions, with Nvidia described as “a huge part of that.”

Impact on Intel:

• Short-Term Boost:
  • The partnership is a “huge boost” to Intel’s reputation, particularly in CPUs, as “everyone views Nvidia as the gold standard across the board.” — Amrith Ramkumar [03:28]
• Long-Term Uncertainty:
  • The deal’s impact on Intel’s foundry business—the segment U.S. policymakers care about most—remains unclear, as demand for Intel's chip manufacturing has lagged.
  • “One of the core problems for Intel is that there’s not much demand for its foundry business... this deal doesn’t really appear to help with that.” — Amrith Ramkumar [03:44]

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2. Market and Economic Updates

Segment starts: [04:20]

• Nvidia-Intel news fueled a tech rally:
  • Nasdaq: up 0.9%
  • S&P 500: up 0.5%
  • Dow: up 0.3%
• Other Key Indicators:
  • Conference Board’s Leading Economic Index fell 0.5% in August (largest since April), signaling a slowing US economy.
  • New jobless claims dropped to 231,000, returning to previous trends after a recent spike.

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3. Trump Administration vs Fed Governor Lisa Cook

Segment starts: [05:52]

• Legal Battle: Trump administration asks the Supreme Court to remove Fed Governor Lisa Cook, citing unproven allegations of mortgage fraud.
• Administration’s Argument: The President claims authority to remove Cook due to the alleged infractions.
  • "The president can reasonably determine that interest rates paid for by the American people should not be set by a governor who appears to have lied..." — Lydia Wheeler [06:48]
• Cook’s Defense:
  • Cook denies all allegations and claims the firing is politically motivated, meant to allow Trump to appoint an ally.
  • “…President Trump concocted a reason to fire her, basically to vacate a seat on the Fed board that he can then fill…” — Lydia Wheeler [07:13]
• Supreme Court Timeline:
  • A decision could come before the October 28–29 Fed meeting, with an interim administrative stay possible.

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4. American Express Platinum Card Revamp

Segment starts: [08:42]

• Fee Increase: Annual fee jumps from $695 to $895.
• Expanded Benefits: Over $3,500 in annual benefits, including restaurant ($400) and hotel ($600) credits, and perks like airport lounge access. Some benefits, such as the $300 Lululemon quarterly credit, may not be widely used.
• Target Demographic: AMEX pursues big spenders—the top 10%—who drive outsize transaction volume and revenue.
  • “People with more money spend more money. ...If your customer is someone who's spending a lot... you're going to be earning a lot.” — Imani Moise [09:19]
• Reality of Benefits:
  • Not all cardholders use all perks; AMEX benefits from “unused perks” similar to unredeemed gym memberships.
    • “...card issuers are counting on [unused perks]. Some people compare it to a gym membership... the credit card company is still earning that fee regardless.” — Imani Moise [10:36]

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5. President Trump’s UK State Visit and US-UK Tech Partnership

Segment starts: [10:58]

• Major Announcement: President Trump and UK PM Keir Starmer sign a tech partnership expected to drive $340 billion in investment.
• Diplomatic Highlights: Diplomatic pageantry contrasted with limited progress on tariffs or major policy issues.
• On Energy and Ukraine:
  • Trump reiterates Europe’s continued Russian oil purchases hinder efforts to end the war in Ukraine.
  • “If the oil price comes down, very simply, Russia will settle. ...We’re drilling and we produce more oil than anybody else in the world.” — Donald Trump [11:39]

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Memorable Quotes

• On Nvidia’s Political Strategy:
  “Jensen Huang… is one of the people trying to do everything he can to get into [Trump’s] good graces.” — Amrith Ramkumar [01:52]
• On Intel’s Prospects:
  “…Nvidia wants to partner with them… it’s just a huge boost because everyone views Nvidia as the gold standard across the board.” — Amrith Ramkumar [03:28]
• On Credit Card Rewards:
  “Some people compare it to a gym membership where everybody pays their dues, but not everybody shows up. …the credit card company is still earning that fee regardless.” — Imani Moise [10:36]
• On US-UK Diplomacy:
  “The visit’s success underscores how Britain seems to have perfected the art of managing Trump. But… yielded little in terms of tariffs or foreign policy breakthroughs.” — Alex Osola [12:05]

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Timestamps for Key Segments

• Nvidia-Intel deal & Tech Policy Context: [00:29] – [04:16]
• Market and Economic Headlines: [04:20] – [05:51]
• Fed Governor Lisa Cook Legal Update: [05:52] – [07:55]
• AMEX Platinum Card Changes: [08:42] – [10:54]
• Trump’s UK State Visit: [10:58] – [12:05]

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Summary

This episode unpacks high-stakes intersections of tech, politics, and finance—spotlighting Nvidia’s calculated investment in Intel as both a business and political play, the latest twists in Fed governance, credit card warfare for wealthy clients, and evolving US-UK alliances. Through expert voices, the Wall Street Journal offers listeners savvy insights on the forces moving today’s headlines.

Transcript

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[Imani Moise]

There.

[Alex Osola]

What'S driving Nvidia's planned $5 billion investment in Intel?

[Amrith Ramkumar]

The timing is fascinating because tomorrow morning President Trump and Xi and China are chatting about the future of TikTok and expected to finalize that agreement. And trade talks between the US And China are really heating up and Nvidia is a huge part of that.

[Alex Osola]

Plus the Trump administration asks the Supreme Court to let it remove Fed governor Lisa Cook and how American Express is revamping its platinum card to attract big spenders. It's Thursday, September 18th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. Shares in intel were up more than 20% today after Nvidia said it would invest $5 billion in the company's shares at a discount to yesterday's closing price. The partnership between the world's most valuable company and a chip maker that has fallen behind rivals centers on making CPUs, central processing units, the computer brains that power devices from smartphones and laptops to automobiles. The move comes a month after the US government said it was taking a 10% stake in Intel. For more, I'm joined now by WSJ tech policy reporter Amrith Ramkumar. Amrith, what does Nvidia get out of this?

[Amrith Ramkumar]

There are a few things. First, important to note the relationship with the Trump administration and context there. At this moment, Jensen Huang, Nvidia's CEO, really wants the Trump administration to allow exports of one of their chips to China. Basically a chip built on their black hole architecture that would be more advanced than the predecessor they were trying to sell to the Chinese market. And Jensen has been one of Trump's BFFs in this administration and is one of the people trying to do everything he can to get into his good graces. So with the context that the government just did a big deal for intel and is trying to rally private sector support to some degree, this could go a long ways to doing that. There are other business reasons for Nvidia to do this as well. The company is dominant in graphics processing units for data Centers needed to train AI models, That's what everyone knows them for. But they do have areas they can always improve. And collaborations like this one With intel for CPUs, the brains of these devices can allow them to get into the high end PC market. For example, people have said the talks were happening for a long time, but the timing is fascinating because tomorrow morning President Trump and Xi in China are chatting about the future of TikTok and expected to finalize that agreement. And trade talks between the US and China are really heating up and Nvidia is a huge part of that.

[Alex Osola]

What does all of this also mean for Intel? I mean, especially given its years of challenges and recent investment from the US government and SoftBank.

[Amrith Ramkumar]

Yeah, people are saying it's sort of another step in the right direction for intel, but it's not clear how big of a step that will be. The bigger thing is the business partnership. The idea that in this area where it's one of the few areas where intel has some success, this high end PC market for example, and it's x86 architecture, the idea that Nvidia wants to partner with them on that is just a huge boost because everyone views Nvidia as the gold standard across the board. It's still unclear how much this will make a difference because one of the core problems for intel is that there's not much demand for its foundry business. That's the one where it's supposed to be manufacturing the chips. That's the thing that the Trump administration cares about and this deal doesn't really appear to help with that. So definitely a short term boost, but maybe not as much of a long term boon, unless there are other things.

[Alex Osola]

That was WSJ tech policy reporter Amrith Ramkumar. Thank you, Amrit.

[Amrith Ramkumar]

Thanks for having me.

[Alex Osola]

The Nvidia intel deal added fuel to the tech rally in the US Markets with all indexes closing at record highs. The Nasdaq added about 0.9%, the S&P 500 was up about half a percent, and the Dow rose 0.3%. The Conference Board's leading economic index fell half a percent to 98.4 in August. That's its largest decline since April and a bigger drop than economists expected. It's another sign that the US Economy appears to be slowing amid growing concerns about the labor market headwinds from tariffs and a weak manufacturing sector. Separately, new data from the Labor Department out today showed that the number of Americans who newly filed for unemployment benefits declined sharply last week, falling to 231,000, down from an upwardly revised 264,000 a week earlier. Last week's numbers return the figures to the previous trend after a large spike the week before. The Trump administration has filed an emergency request asking the Supreme Court to let it remove Federal Reserve Governor Lisa Cook from the central bank's board while a lawsuit challenging the president's effort to fire her proceeds. Lydia Wheeler is a legal affairs reporter in the Wall Street Journal's Washington, D.C. bureau and is here now with more. Lydia. Earlier this week, a federal appeals court rejected the administration's bid to remove Cook ahead of the Fed's most recent meeting. What is its argument now to the Supreme Court? What is it going after?

[Lydia Wheeler]

So the Trump administration is arguing that the president has the legal authority to remove Lisa Cook from the Federal Reserve Board. When President Trump announced that he was firing Lisa Cook, he cited allegations that she submitted fraudulent information on her mortgage applications to obtain more favorable lending terms before taking office. Those allegations were referred to the Justice Department, which has since launched an investigation. Lisa Cook so far has not been charged with any crime. But the president, regardless, is claiming that, hey, this makes it seem like she isn't qualified for this position and can't be trusted on the board and needs to be removed. Solicitor General John Sauer, who is the Trump administration's Supreme Court lawyer, said that the president can reasonably determine that interest rates paid for by the American people should not be set by a governor who appears to have lied about facts material to interest rates that she secured for herself.

[Alex Osola]

And what has Cook's side said about this?

[Lydia Wheeler]

So Lisa Cook has said that she has never committed mortgage fraud. Lisa Cook's attorneys didn't immediately respond to the press president's request to the Supreme Court here. Lisa Cook in her lawsuit is arguing that President Trump concocted a reason to fire her, basically to vacate a seat on the Fed board that he can then fill to undermine the central bank's independence.

[Alex Osola]

The next fed meeting is October 28th and 29th. Does it seem likely that there's going to be a decision before then?

[Lydia Wheeler]

Potentially. So we could get a really quick interim order from the court that's known as an administrative stay. And this basically lets Trump immediately remove Lisa Cook from the Fed while the full Supreme Court kind of considers what to do with this request and considers whether or not to keep her off the board while litigation proceeds over her firing.

[Alex Osola]

That was WSJ legal affairs reporter Lydia Wheeler. Thank you, Lydia.

[Lydia Wheeler]

Thank you so much.

[Alex Osola]

Coming up, why AMEX is raising the fee for its platinum card. That's after the break.

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[Alex Osola]

American Express is raising the annual fee on its Platinum credit card to $895 from $695. The company said the card will now come with more than $3,500 in annual benefits, including credits of $400 for restaurants and $600 for hotels. It previously offered $1,500 in rewards. It's the latest move in Credit card issuers battle for affluent cardholders. Imani Moeeth covers personal economics for the Journal and joins me now. Imani, why are credit card companies, and Amex in particular going after these wealthy customers?

[Imani Moise]

The top 10% of earners are driving a disproportionate amount of spending and economic growth. People with more money spend more money. And the way that these credit cards work is that the credit card companies get a fee, a small percentage of every transaction. So if your customer is someone who's spending a lot as the card issuer, you're going to be earning a lot.

[Alex Osola]

Of what is Amex offering these customers?

[Imani Moise]

Well, you mentioned some of the Credits, so the $400 back on resi reservations and hotels. There's also airport lounge access, which is a very sought after perk. But there are some perks that may be harder to use. Like one that stuck out to me was a $300 Lululemon credit that's doled out quarterly. So if you buy a new pair of leggings every quarter, that would be really helpful for you. But if you if that's not your fashion style, then maybe that one goes unused.

[Alex Osola]

I understand that exclusivity plays a role in what makes these cards appealing to customers.

[Imani Moise]

One of the most exclusive perks would be those airport lounges. If you've been to an airport recently, you've probably seen a very long line outside of the airport lounge because so many people want to get in. It's just a respite. You get free food, free drinks, and people just like to be seen as having access to something that other people don't.

[Alex Osola]

The card touts all of these benefits and rewards.

[Imani Moise]

Do people actually use these most of the time? No. And that might be something that card issuers are counting on. Some people compare it to a gym membership where everybody pays their dues, but not everybody shows up. And whether or not you show up, the gym membership or in this case, the credit card companies is still earning that fee regardless. So it could be a win win for the card companies.

[Alex Osola]

That was WSJ personal economics reporter Imani Moise. Thanks, Imani.

[Imani Moise]

Thank you.

[Alex Osola]

And President Trump has wrapped up his state visit to the uk. After two days of regal ceremonies, President Trump and British Prime Minister Keir Starmer signed a tech partnership agreement that is predicted to result in $340 billion of investment on both sides of the Atlantic. In a press conference, they also tiptoed around their biggest differences on several thorny issues, including Palestinian statehood, immigration, energy policy, free speech, and the removal the UK's Washington ambassador over his past friendship with disgraced financier Jeffrey Epstein. In response to a reporter question about the war in Ukraine, President Trump reiterated that Europe would have to stop buying Russian oil to stop the conflict.

[Donald Trump]

I'm willing to do other things, but not when the people that I'm fighting for are buying oil from Russia. If the oil price comes down, very simply, Russia will settle. And the oil price is way down. You know, we got it way down. We're drilling and we produce more oil than anybody else in the world. We're doing a lot. But I was disappointed to see that, and the prime minister was disappointed to see that. And it wasn't him, it was other countries.

[Alex Osola]

The visit's success underscores how Britain seems to have perfected the art of managing Trump. But despite the good vibes, the meeting yielded little in terms of tariffs or foreign policy breakthroughs. And that's what's news for this Thursday afternoon. Today's show is produced by Pierre Biennime and Rodney Davis, with supervising producer Michael Kosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning.

[Imani Moise]

Thanks for listening.