Hard to see the government and Nvidia buying up Intel as any sort of real solution. Intel had to compete its way back to competitiveness, not this, whatever “this” is.
Given a real geopolitical risk and NVidia’s current valuation - 5 billion seems cheap if it secures them an alternative manufacturing partner.
At best, the two companies are locked into a monopsomy/monopoly market for the next 2 years where TSMC needs NVidia to sell chips and NVidia needs TSMC to make them - in the long term, these arrangements are rarely stable. NVidia wants more manufacturing partners, and TSMC wants more GPU makers.