Intel and Nvidia announce a huge partnership to jointly develop multiple generations of consumer CPU and data center products. Nvidia is also investing $5 billion in Intel.

That's right, peeps, Intel and Nvidia have released a joint statement revealing plans to work together to build new computing products based on Intel's x86 CPUs and Nvidia's GPUs. Oh, and Nvidia is investing $5 billion in Intel. Hold that thought.

Nvidia will use the $5 billion that it plans to invest in Intel to buy common stock for $23.05 per share. That’s a more than 5% discount to the latter company’s Wednesday closing price. The deal is poised to give Nvidia an approximately 4% stake in Intel, which will make it one of the chipmaker’s largest shareholders.

Intel ( INTC -2.00%) just had one of its best days in years, with its stock price surging after Nvidia ( NVDA 3.42%) revealed it would take a $5 billion stake in the chipmaker and partner on new products. The stock price is now up about 50% on the year.