SoftBank invests $2 billion in Intel; potential US government contribution
In a significant development for the tech industry, the US government is reportedly in talks to invest up to 10% in Intel, amounting to $8.9 billion. This potential investment comes at a time when Intel, one of the world's leading chip designers and manufacturers, is struggling to maintain operations and turn things around.
The CEO of Intel, Lip-Bu Tan, has been at the helm since March 18, 2025, leading major changes including workforce reduction and culture transformation. Under his leadership, Intel reported an annual loss of $18.8 billion, its first since 1986. However, the US government's investment indicates a strong trust in Tan's leadership amid ongoing investment and strategic developments.
Analysts believe that if Intel can carry out its long-delayed strategy, it could still challenge TSMC in the United States. SoftBank Group of Japan has already shown its faith in Intel, investing $2 billion in the company. SoftBank will pay $23 per Intel share for an equity stake of just under 2%.
The investment makes SoftBank one of Intel's top ten shareholders. However, it does not grant SoftBank a seat on the Intel board or a commitment to purchasing Intel chips. SoftBank CEO Masayoshi Son stated that the investment demonstrates Intel's commitment to expanding US semiconductor manufacturing capacity.
The investment reflects SoftBank's growing interest in artificial intelligence. This aligns with SoftBank's broader AI strategy, including the $500 billion Stargate data center project. Notably, SoftBank made a $30 billion investment in OpenAI earlier this year.
The potential government investment in Intel has received mixed reactions. While some see it as a necessary step to support a struggling American tech giant, others express concerns about government intervention in the private sector.
Ashish Singh, the Chief Copy Editor at our platform, has been working in the tech industry since 2020. Interestingly, he speaks fluent Geek, a term often used to describe a person who has an exceptional understanding of technology.
Intel shares rose by 5.6% in after-market trading due to the potential government investment. However, SoftBank's stock fell more than 5% in Tokyo following the potential investment in Intel.
The US government has not yet made a decision on the potential investment in Intel. The outcome of these talks could have significant implications for both the tech industry and the US economy.
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