Intel once wanted to take it over, and now NVIDIA is bailing it out.

Nvidia said it will invest $5 billion in Intel , supporting the struggling US chipmaker, Reuters reports.

The investment will make Nvidia one of Intel's largest shareholders.

Nvidia made the announcement just weeks after the White House struck a remarkable deal that gave the federal government a massive stake in Intel .

Nvidia's support gives Intel a new lease on life after years of efforts to turn things around failed to yield results. The investment will make Nvidia one of Intel's largest shareholders , giving it a stake of about 4 percent in the company after the new shares are issued, Reuters comments.

Intel—once a flagship chip company that claimed to have brought "silicon" to Silicon Valley—appointed a new CEO, Lip-Bu Tan, in March. The new CEO quickly came under fire from U.S. President Donald Trump, who announced his resignation over concerns about his ties to China. This led to a meeting in Washington that concluded with Intel's unusual agreement to give the United States a 10 percent stake in the company , Reuters reports.

Nvidia CEO Jensen Huang told reporters that the Trump administration was not involved in the partnership agreement but would express support. Huang was seen with Trump and other business leaders during the U.S. president's visit to the UK on Thursday, according to Reuters.

Nvidia announced it would pay $23.28 per share for Intel

The new agreement includes a plan for the two companies to jointly develop chips for PCs and data centers , but crucially, it will not involve Intel's contract manufacturing division or the foundry that produces chips for Nvidia. Instead, Intel's foundry will supply central processing units and advanced packaging for the joint products.

Nvidia said it will pay $23.28 per share for Intel common stock , slightly below Wednesday's closing price of $24.90 but more than the $20.47 paid by the U.S. government . Nvidia shares rose 3.8% on Thursday.

The companies did not disclose the financial terms of the collaboration, but announced that they would create "multiple generations" of future products.

Almost 20 years ago, in October 2006, Intel announced that it was "in talks to acquire the well-known graphics chip supplier, California-based NVIDIA." The potential deal was said to be a response to AMD's acquisition of ATI. The deal fell through, even though Wall Street believed it was highly likely.