Intel says it will still be making new Arc GPUs after it announced a strategic partnership with NVIDIA for the future of its data center, consumer chips.

Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and will collaborate with the struggling semiconductor company.

Nvidia is investing $5 billion in Intel. The news comes after the US government took a roughly 10 percent equity stake in the struggling chipmaker.

CEO Jensen Huang said Taiwan Semiconductor Manufacturing (TSM) will provide the foundry support for the "revolutionary" chips they are making with Intel (INTC).

Nvidia's deal with Intel could put the struggling chipmaker's next-generation manufacturing technology on a stronger footing, even without a direct commitment from the AI chip leader to use that technology to make its own chips,

The two companies will focus on seamlessly connecting their architectures using something called NVIDIA NVLink. For those of you who don't know, NVLink is a high-speed communication link that lets GPUs, and now apparently CPUs and GPUs, talk to each other with a ton of bandwidth and very little latency.

Shares of Intel ( INTC 22.81%) are flying this week, up 27% as of market close on Thursday. The jump comes as the S&P 500 and Nasdaq-100 gained 0.7% and 1.5%, respectively. The chipmaker's stock exploded this week after Nvidia announced a $5 billion investment and "multigeneration" partnership agreement with Intel.