Nvidia said Thursday it is investing $5 billion in Intel, the struggling chipmaker that offered the U.S. government a stake in its company under pressure from President Trump.

The deal will combine Nvidia’s artificial intelligence and accelerated computing capabilities with Intel’s CPU technologies and x86 ecosystem, according to the companies.

Nvidia CEO Jensen Huang called it “a fusion of two world-class platforms.”

“Together, we will expand our ecosystems and lay the foundation for the next era of computing,” he said.

Nvidia, a highly valuable tech company based in California, frequently moves markets with its earnings and other news. Underscoring its importance, Mr. Huang attended an economic meeting between Mr. Trump and U.K. Prime Minister Keir Starmer to advance technologies such as artificial intelligence.

“You’re taking over the world, Jensen. I don’t know what you’re doing here,” Mr. Trump quipped at the prime minister’s country residence.

Stock futures rose on Thursday after Nvidia announced the deal. Intel shares were up nearly 30%.

Mr. Trump has taken a special interest in Nvidia, particularly in deciding whether to allow it to sell its less-advanced chips to China and Intel, a massive chip manufacturer needing a rebound.

The company recently agreed to give the U.S. government a 10% equity stake in the company in return for the funding promised under President Biden’s 2022 law to bolster America’s semiconductor industry.

Besides Intel, Mr. Trump arranged a “golden share” for the government in U.S. Steel as part of its merger with Japan’s Nippon Steel. The Defense Department also took a stake in MP Materials, which mines for rare earths.

The Trump administration also said it will scrutinize defense contractors and university patents to see if the U.S. government deserves a larger cut of proceeds from taxpayer-funded projects.

Intel CEO Lip-Bu Tan visited the White House in August after Mr. Trump’s Senate GOP allies raised questions about the CEO’s possible links to China and its communist party.

The pair cleared the air in the meeting, and Mr. Tan agreed to the U.S. stake in the company.

Now, Nvidia is making a big bet on the company and becoming one of Intel’s biggest shareholders.

In a statement Thursday, Mr. Tan said Intel appreciates “the confidence Jensen and the NVIDIA team have placed in us with their investment and look forward to the work ahead as we innovate for customers and grow our business.”

• Tom Howell Jr. can be reached at thowell@washingtontimes.com.