Correction: Renegotiated a prior loan as a $8.9B stock purchase.

Does that mean Intel doesn't ever have to pay it back?

It means Intel already paid it back. The dilution hurt all other owners.

That is arguable. Regardless of everything else, currently Intel stock is up about 50% from recent averages. If investors were so hurt, they really should be selling right now, and there seems to be reason to do so because Intel's troubles have not gone away with this Nvidia stake that does not touch Intel's rotten underbelly.

Both statements can be true. Dilution hurts investors, but fresh cash and a strategic Nvidia partnership have huge potential upsides.