Struggling Intel gets $2 billion investment from SoftBank
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Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.
A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.
Japanese investment giant SoftBank has announced a substantial US$2bn investment in Intel, the major American semiconductor company. This move marks a significant vote of confidence for Intel, which has faced scrutiny, including pressure from U.S. political figures calling for the resignation of its CEO.
Intel’s stock rose 7% on Tuesday after SoftBank announced a stake in the chip maker, and as the U.S. government considers an investment as well. Money might not be the solution to Intel Corp.’s problems.
The move could signal SoftBank’s chip ambitions, as the company may be gearing up to build Arm CPU tiles, AI XPUs, and Ampere chips tied to the Stargate Project.
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The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,