Headlines
Intel gets $2 billion lifeline in the form of SoftBank equity investment
Published by Global Banking and Finance Review
Posted on August 18, 2025
3 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 18, 2025
3 min readLast updated: January 22, 2026
SoftBank's $2 billion investment in Intel boosts the chipmaker's turnaround efforts amid AI industry challenges and financial struggles.
By Jaspreet Singh, Max A. Cherney and Anton Bridge
(Reuters) -Intel is getting a $2 billion capital injection from SoftBank Group in a major boost of confidence for the troubled U.S. chipmaker that is in the middle of a turnaround effort.
The equity investment, announced by the two companies on Monday, is a lifeline for the once-iconic U.S. chipmaker which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence chip industry.
The deal follows media reports last week that the U.S. government may buy a stake in Intel, after a meeting between new CEO Lip-Bu Tan and President Donald Trump that was sparked by the President's demand for Tan's resignation over his ties to Chinese firms.
SoftBank's decision to invest in Intel is not connected to Trump, a person familiar with the matter told Reuters. The White House did not immediately respond to a request for comment.
The investment will make SoftBank a top-10 shareholder of Intel and add to the Japanese tech investor's ambitious bet on AI that includes the $500 billion Stargate U.S. data center project.
"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," SoftBank CEO Masayoshi Son said in a statement.
It will pay $23 per share for the Intel common stock. SoftBank would become the sixth largest investor in Intel, according to LSEG data.
SoftBank's investment will come via a primary issuance of common stock by Intel, and, based on the U.S. company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, an Intel spokesperson said.
SoftBank's shares dropped more than 5% on Tuesday following the announcement, while Intel surged 5.6% in after-market hours trading.
The Japanese company will only take an equity stake in Intel and will neither seek a board seat nor commit to buying Intel's chips, the person familiar with the matter said.
Intel has struggled financially and recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986.
Bloomberg News reported earlier on Monday that the U.S. government is in talks to take a 10% stake in Intel.
SoftBank declined to provide more details on the Intel investment when asked to comment by Reuters.
The Intel funding is the latest in the Japanese company's run of mammoth investment announcements in 2025, which include committing $30 billion to ChatGPT maker OpenAI as well as leading the financing for Stargate.
On Monday Taiwan's Foxconn said it plans to manufacture data centre equipment with SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio as part of the Stargate project.
(Reporting by Jaspreet Singh in Bengaluru, Max Cherney in San Francisco and Anton Bridge in Tokyo; Additional reporting by Angela Christy in Bengaluru; Writing by Miyoung Kim; Editing by Alan Barona and Muralikumar Anantharaman)
Equity investment refers to the purchase of shares in a company, providing the investor with ownership rights and a claim on the company's assets and earnings.
Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, particularly computer systems, enabling them to perform tasks that typically require human intelligence.
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