In a significant endorsement of Intel’s ongoing turnaround, SoftBank Group has announced a $2 billion equity investment in the U.S. chipmaker. The deal, revealed Monday, marks a pivotal moment for Intel as it seeks to regain relevance in the competitive semiconductor industry, particularly in artificial intelligence (AI). The investment will make SoftBank one of Intel’s top 10 shareholders and underscores the Japanese conglomerate’s deepening commitment to AI, which also includes the ambitious $500 billion Stargate U.S. data center initiative.
The funding comes as Intel grapples with the fallout of years of strategic missteps that have caused it to fall behind rivals in the fast-evolving AI chip sector. With this primary issuance of common stock, SoftBank will acquire an equity stake of just under 2% in Intel, paying $23 per share — slightly below Monday’s closing price of $23.66. According to LSEG data, this will position SoftBank as Intel’s sixth-largest shareholder.
“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,” said SoftBank CEO Masayoshi Son in a statement.
Despite the optimism from Intel’s side, SoftBank shares dropped more than 5% in Tokyo on Tuesday following the announcement. Meanwhile, Intel’s stock climbed 5.6% in after-hours trading, reflecting investor approval of the capital injection.
The move comes shortly after media reports suggested that the U.S. government might also take a stake in Intel. This speculation was fueled by a meeting between Intel’s newly appointed CEO, Lip-Bu Tan, and President Donald Trump. Trump had reportedly called for Tan’s resignation due to concerns over his previous connections with Chinese firms. However, a source familiar with the matter clarified that SoftBank’s investment decision is unrelated to the Trump administration or recent political developments.
SoftBank will not seek a board seat at Intel nor commit to purchasing its chips, according to the same source. Instead, the investment appears to be a purely strategic bet on the future of AI and Intel’s role in that ecosystem.
