NEW YORK (AP) — Nvidia, the world's leading chipmaker, announced on Thursday that it's investing $5 billion in Intel and it will collaborate with the struggling semiconductor company on products.

Nvidia and Intel will team up to work on custom data centers that form the backbone of artificial intelligence infrastructure as well as personal computer products, Nvidia said in a press release.

Nvidia said it will spend $5 billion to buy Intel common stock at $23.28 a share. The investment is subject to regulatory approvals.

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms," Nvidia CEO Jensen Huang said. "Together, we will expand our ecosystems and lay the foundation for the next era of computing.”

The agreement provides a lifeline for Intel, which was a Silicon Valley pioneer that enjoyed decades of growth as its processors powered the personal computer boom, but fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut. Intel fell even farther behind in recent years amid the artificial intelligence boom that's propelled Nvidia into the world's most valuable company.

In premarket trading, Intel shares soared 30%. Nvida shares added 3%.