Intel has received a much-needed $2 billion equity investment from Japan’s SoftBank Group, giving the struggling US chipmaker a financial boost as it works to regain ground in the fast-growing artificial intelligence market.
The deal, announced Monday, will make SoftBank the sixth-largest Intel shareholder, with a stake just under 2%. The Japanese tech giant will pay $23 per share, slightly below Intel’s closing price of $23.66.
SoftBank’s AI Bet
SoftBank has been ramping up its investments in artificial intelligence, with commitments including a $500 billion Stargate data center project and a $30 billion stake in OpenAI. Its latest move adds Intel to its growing AI-focused portfolio.
SoftBank CEO Masayoshi Son said the investment reflects confidence in Intel’s role in expanding advanced semiconductor manufacturing in the United States.
Market Reaction
The announcement lifted Intel shares by 5.6% in after-hours trading, while SoftBank’s stock dropped over 5% on Tuesday in Tokyo.
A person familiar with the deal said SoftBank will not seek a board seat at Intel or commit to buying its chips, underscoring that this is strictly an equity investment.
Intel’s Struggles
Intel has faced multiple setbacks in recent years, including:
- A $18.8 billion loss in 2024, its first annual loss since 1986.
- Declining market share in PC and server chips to rival AMD.
- Costly but underperforming efforts to build a contract chip business to compete with Taiwan’s TSMC.
Reports last month suggested Intel may overhaul its contract manufacturing strategy to attract new customers. Meanwhile, Bloomberg said the US government is considering a 10% stake in Intel, though no deal has been confirmed.
Bigger Picture
The SoftBank investment comes amid a wave of large-scale tech funding in 2025. Alongside its Intel move, SoftBank has partnered with Foxconn to produce data center equipment in Ohio as part of the Stargate project.
Analysts say Intel’s dual role as both chip designer and manufacturer gives it a unique position to challenge TSMC, but its turnaround remains an uphill battle.
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