Nvidia's $5B bet on rival Intel
PLUS: AI models conquer coding contests and China intensifies its chip war against Nvidia
Welcome back, AI’ers!
Here’s What’s On The Menu For Today
Nvidia's $5B partnership with rival Intel
AI models conquer coding contests
China intensifies its chip war against Nvidia
Microsoft's $4B AI supercomputing hub
AI ON MY MIND
Happy Thursday,
Sorry for the late issue.
In a surprising strategic shift, Nvidia is investing $5 billion into its longtime competitor, Intel. The two semiconductor giants are now set to partner on co-developing a new generation of data center and consumer chips.
This alliance marks a major realignment in the chip industry, prioritizing collaboration to meet the immense computing demands of AI. But with Intel getting a crucial connection to the AI boom, will this partnership be enough to reshape the competitive landscape?
By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].
-Jelani Fuel (Co-founder of Best of AI)
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TODAY’S TOP STORIES

Nvidia and Intel Join Forces in $5B Deal
The Recap: In a landmark move, Nvidia is investing $5 billion into its longtime rival, Intel. The two semiconductor giants are launching a broad partnership to co-develop new data center and consumer chips.
Unpacked:
The collaboration will produce custom x86 CPUs for Nvidia's AI platforms and new PC systems that integrate Nvidia's RTX GPU chiplets directly into Intel's hardware.
To connect their distinct architectures, the companies will use Nvidia’s high-speed NVLink interface, enabling faster data and control transfers between their components.
The market reacted immediately and positively to the news, with Intel's stock soaring as much as 28% and Nvidia's shares rising 3% upon the announcement.
Bottom line: This alliance marks a major shift in the semiconductor industry, prioritizing strategic collaboration over pure competition to meet the immense demands of AI. For Intel, this partnership provides a critical lifeline, directly connecting its manufacturing capabilities to the core of the ongoing AI boom.

AI Models Conquer Coding Contests
The Recap: AI has hit a new reasoning milestone, with models from OpenAI and Google earning gold-medal scores at the ICPC World Finals, one of the world's most demanding competitive programming contests.
Unpacked:
OpenAI’s GPT-5 model reportedly achieved a perfect score by solving all 12 challenges, outperforming the top human team which successfully solved 11.
Google’s Gemini 2.5 Deep Think also secured a gold medal by solving 10 problems, including one difficult challenge that stumped every human team.
The models competed under the same official constraints as the 139 university teams, proving their capabilities in a fair, head-to-head comparison.
Bottom line: AI now demonstrably handles complex, multi-step logic on par with elite human programmers. This advancement paves the way for automating highly intricate software development and accelerating scientific discovery.
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MORE NEWS

China's Chip Offensive
The Recap: The global chip war is intensifying as China reportedly orders its tech giants to stop buying Nvidia's AI chips, while Huawei simultaneously unveils an ambitious roadmap for its own advanced chips to challenge Nvidia's dominance.
Unpacked:
Chinese authorities have reportedly ordered top tech firms to halt purchases of Nvidia’s AI chips and cancel existing orders, a major blow to the U.S. chipmaker.
Just as the ban was reported, Huawei broke years of silence to reveal its long-term strategy for its Ascend AI chips, promising a one-year release cycle that doubles computing power with each new version.
This two-pronged approach underscores China’s national drive for tech self-sufficiency, with Huawei also announcing it has developed its own proprietary high-bandwidth memory (HBM), a critical component for AI processors.
Bottom line: This coordinated move escalates the U.S.-Sino tech rivalry and creates significant market uncertainty for Western chipmakers. It also signals that China’s domestic semiconductor industry is ready to compete on the global stage, potentially reshaping the AI hardware landscape.

Microsoft's $4B AI Supercomputing Hub
The Recap: Microsoft is pouring another $4 billion into its Wisconsin operations to build a second advanced AI data center. The facility will house a massive supercomputer designed to train the next generation of frontier AI models.
Unpacked:
The new center will be packed with hundreds of thousands of Nvidia's powerful Blackwell GB200 GPUs.
This facility is part of a larger strategy to create a distributed training supercomputer, aiming for 10 times the performance of today’s fastest machines.
The total investment in the Wisconsin site now reaches $7.3 billion, creating nearly 800 permanent jobs once both data centers are operational.
Bottom line: This massive investment underscores the immense physical infrastructure and capital required to compete in the AI arms race. Access to this level of computing power is quickly becoming the primary advantage in building next-generation AI.
OTHER NEWS YOU MAY LIKE
Meta unveiled its $799 Ray-Ban Display smart glasses, which feature an in-lens display and a new neural wristband that translates subtle hand gestures into commands.
YouTube announced a major AI upgrade for creators, rolling out new tools designed to streamline content creation and editing directly on the platform.
Google saw its Gemini app surge to the top of global app store charts, driven by the viral popularity of its "Nano Banana" image-generation feature.
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AI ON SOCIAL
We are building “Open Source Nano Banana for Video” - here is open source demo v0.1
We are open sourcing Lucy Edit, the first foundation model for text-guided video editing!
Get the model on @huggingface 🤗, API on @FAL, and nodes on @ComfyUI 🧵
— Decart (@DecartAI)
8:11 PM • Sep 18, 2025
Welcome to the new @googlechrome. 🎉 With AI built in, your browser is no longer just a window to the web — it’s an intelligent, proactive partner that can better anticipate your needs, help you understand more complex information and make you more productive, all while keeping
— Google (@Google)
5:16 PM • Sep 18, 2025
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THAT’S IT FOR TODAY
Until next time, stay safe.
-Best of AI Team
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