SoftBank invests $2 billion in Intel to support its AI chip development and competitive positioning against rivals.
Intel will receive a US$2 billion equity investment from Japan's SoftBank Group, providing financial support as the U.S. semiconductor giant works to regain ground in the artificial intelligence chip race. SoftBank will pay US$23 per share for newly issued Intel stock, giving it an equity stake just under two percent and making it a top-10 shareholder. Based on current market capitalization, SoftBank will rank as Intel's sixth-largest investor, according to LSEG data.
The investment comes after years of missteps that have left Intel lagging behind rivals and facing significant financial challenges. Intel recorded its first annual loss since 1986 in 2024, losing US$18.8 billion, as it struggles to compete with Nvidia, which dominates the AI chip market. The funds provide breathing room as Intel attempts to reestablish itself in advanced chip manufacturing and overcome a string of recent setbacks, including production delays and leadership upheaval.
SoftBank CEO Masayoshi Son stated: "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." The market reacted positively to Intel's news, with its shares rising 5.6 percent in after-hours trading, though SoftBank stock fell more than five percent in Tokyo on August 19. Sources confirmed that SoftBank's decision was not tied to separate reports that the U.S. government may consider taking up to a 10 percent stake in Intel following a meeting between CEO Lip-Bu Tan and President Donald Trump, and the Japanese investor does not plan to seek a board seat or commit to buying Intel's chips.
The investment marks SoftBank's latest major bet on artificial intelligence infrastructure, extending its aggressive investment streak in 2025. Beyond Intel, SoftBank has pledged US$30 billion to OpenAI and is leading funding for the Stargate project, a U.S. mega data center venture valued at US$500 billion. As part of the broader Stargate initiative, Foxconn said it will manufacture data center equipment with SoftBank in Ohio.