Intel has landed a $2 billion equity investment from Japan’s SoftBank Group, injecting fresh capital into the U.S. chipmaker as it struggles to regain relevancy in the fast-evolving global semiconductor landscape.
The deal, unveiled Monday, vaults SoftBank into Intel’s top ranks of shareholders, as the American company races to recover from years of strategic missteps and catch up in the booming market for artificial intelligence hardware.
The move marks another bold outlay in SoftBank’s aggressive AI-centered investment spree, which includes the $500 billion Stargate U.S. data center project and a recent $30 billion stake in OpenAI.
SoftBank’s investment will be made at $23 per share, absorbing just under 2% of Intel’s equity through a primary stock issuance. LSEG data shows this catapults SoftBank to Intel’s sixth-largest investor spot.
The investment demonstrates Softbank’s confidence in the expansion of cutting-edge chip manufacturing in the United States, with Intel poised to play a pivotal role, SoftBank CEO Masayoshi Son said.
According to a source familiar with the matter, the Japanese conglomerate’s move is unrelated to recent reports of the U.S. government exploring a stake in Intel, following CEO Lip-Bu Tan’s meeting with President Donald Trump.
Despite SoftBank’s prominent position, it does not intend to seek a board seat nor commit to buying Intel products, said the source.
Intel, which posted a staggering $18.8 billion annual loss in 2024—the first in almost four decades—has been wrestling with fading technological leadership as rivals dominate the AI chip sector.
Investors reacted positively to the development: Intel shares leapt 5.6% in after-hours trading, while SoftBank shares declined over 5% after the news.
