SoftBank Invests in Intel to Boost AI
SoftBank Invests in Intel, Offering Lifeline to Struggling U.S. Chipmaker
In a major vote of confidence for Intel, SoftBank announced on Monday that it is making an equity investment in the once-iconic U.S. chipmaker. The move comes as Intel continues to face challenges in the fast-growing artificial intelligence chip market, after years of management missteps left it struggling to compete.
The investment will make SoftBank one of Intel’s top 10 shareholders and strengthen the Japanese company’s already ambitious AI portfolio, which includes the $500 billion Stargate U.S. data center project.
Reports surfaced last week suggesting the U.S. government might buy a stake in Intel after a meeting between Intel’s new CEO, Lip-Bu Tan, and President Donald Trump. The meeting reportedly followed Trump’s call for Tan’s resignation over his connections to Chinese firms. However, sources told Reuters that SoftBank’s investment decision is entirely separate from the White House.
“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,” said SoftBank CEO Masayoshi Son in a statement.
SoftBank will pay $23 per Intel share, slightly below Monday’s closing price of $23.66. The investment will come through a primary issuance of Intel common stock, giving SoftBank just under a 2% equity stake based on Intel’s market value at Monday’s close.
The investment positions SoftBank as Intel’s sixth-largest investor, according to data from LSEG. Following the announcement, SoftBank shares fell more than 5% on Tuesday, while Intel shares jumped 5.6% in after-hours trading.
A source familiar with the deal said SoftBank will not seek a board seat or commit to buying Intel’s chips—it is purely an equity investment.
Intel’s Struggles
Intel has faced significant financial and operational hurdles. In 2024, it recorded an $18.8 billion annual loss, its first since 1986. Rival AMD has steadily gained ground in Intel’s core PC and server markets, while Intel’s ambitious chip contract manufacturing plans have yet to take off.
The company is reportedly considering a major restructuring of its contract chip business to attract key customers, a move that could be costly. Charu Chanana, chief investment strategist at Saxo, noted, “Intel’s dual role as designer and manufacturer/fabricator uniquely positions it as potentially the best platform in the U.S. to compete with TSMC.”
Earlier Monday, Bloomberg reported that the U.S. government is in talks to acquire a 10% stake in Intel, although details remain unconfirmed.
SoftBank has not disclosed further details about the Intel investment. The deal is part of the Japanese firm’s string of high-profile investments in 2025, including a $30 billion commitment to OpenAI and funding for the Stargate project.
As part of Stargate, Taiwan’s Foxconn announced Monday it will manufacture data center equipment with SoftBank at its former electric vehicle factory in Ohio.
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