Finance
Intel in talks with large investors for equity boost at discount, CNBC reports
Published by Global Banking & Finance Review®
Posted on August 20, 2025
2 min readLast updated: January 22, 2026
Quick Summary
Intel is in talks for a discounted equity boost from major investors, following a $2 billion investment from SoftBank. The U.S. government may also seek a stake.
Intel Negotiates Equity Boost with Major Investors at Discounted Rates
Intel's Financial Challenges and Funding Efforts
(Reuters) -Intel is in talks with other large investors to receive an equity infusion at a discounted price, CNBC reported on Wednesday, just days after the struggling chipmaker got a $2 billion capital injection from SoftBank Group.
Recent Investments and Market Response
The new funding would be another financial lifeline for Intel, as billions of dollars in investment to expand its contract manufacturing business, which is struggling to compete with Taiwan's TSMC, has strained its balance sheet.
Government Involvement and Future Prospects
The CNBC report, which cited people familiar with the matter, did not name the potential investors. Intel, whose shares fell 7%, did not respond to a Reuters request for comment.
This could be the second capital injection at a discounted price after SoftBank's investment at $23 per Intel share for a stake of just under 2%.
The company's shares had risen nearly 7% on Tuesday on SoftBank's investment plan and had last week gained more than 23% on reports of the U.S. government taking a stake.
On Tuesday, Commerce Secretary Howard Lutnick said the government wants an equity stake in Intel in exchange for CHIPS Act grants approved by former President Joe Biden's administration.
Intel, which had secured about $8 billion in subsidies to build factories - the largest outlay under the 2022 CHIPS Act- has significantly pared back manufacturing ambitions under new CEO Lip-Bu Tan.
Years of management missteps has left the company with virtually no foothold in the booming artificial intelligence chip industry dominated by Nvidia.
Of late, Intel has been on shaky ground with Washington, with U.S. President Donald Trump meeting Tan last week, after seeking his resignation over "highly conflicted" ties to Chinese firms.
Intel's last fiscal year of positive adjusted free cash flow was 2021 and it recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)
Key Takeaways
- •Intel is negotiating an equity boost at discounted rates.
- •SoftBank recently invested $2 billion in Intel.
- •Intel's manufacturing expansion strains its finances.
- •U.S. government shows interest in Intel equity.
- •Intel faces challenges in AI chip industry.
Frequently Asked Questions about Intel in talks with large investors for equity boost at discount, CNBC reports
1What is Intel seeking from large investors?
Intel is in talks with large investors for an equity infusion at a discounted price.
2How much funding has Intel secured from the government?
Intel has secured about $8 billion in subsidies to build factories under the 2022 CHIPS Act.
3What was the impact of SoftBank's investment on Intel's shares?
Intel's shares rose nearly 7% on Tuesday following SoftBank's investment plan.
4What challenges is Intel facing in the chip industry?
Intel has struggled to compete with TSMC and has lost its foothold in the booming artificial intelligence chip market dominated by Nvidia.
5What was Intel's financial performance in 2024?
Intel recorded an annual loss of $18.8 billion in 2024, marking its first such loss since 1986.
