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's $5 billion investment in Intel is a double-edged sword for Asian chipmakers such as TSMC as an Intel revival could ease U.S. scrutiny on its foreign rivals although it can boost competition in the long term.

Intel has clarified its position regarding its graphics roadmap after announcing a major partnership with Nvidia. While the two companies will cooperate on developing x86 processors aimed at both consumer PCs and large-scale data centers,

Nvidia is investing $5 billion in Intel in a “multigeneration” partnership. The pact could aid Intel’s turnaround, but the scope for Intel’s foundry remains uncertain as Nvidia said that TSMC will stay its primary fabricator.

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

Nvidia bets $5 billion on Intel. Intel's shares jumped 23%, although the deal doesn't involve high-volume commitments for its unprofitable chip-manufa

Intel has been struggling in recent years, but the backing of the U.S. government could help provide it with some stability.