Japanese conglomerate SoftBank has agreed to invest $2 billion in Intel, signaling a renewed commitment to advanced technology and semiconductor innovation in the US. The deal, announced after markets closed on Monday, highlights both companies’ ambitions in AI and next-generation infrastructure.
As per the terms of the agreement, SoftBank will acquire 87 million shares of Intel common stock at $23 per share. The purchase price is slightly below Intel’s closing price of $23.66 on the day of the announcement. This transaction gives SoftBank a 2% stake in Intel, positioning it as the chipcreater’s sixth-largest shareholder. The deal is subject to customary closing conditions. Following this, Intel shares rose more than 5% in after-hours trading.
Intel’s strategic position
For Intel, the investment represents a critical finishorsement as the company seeks to regain its footing in an increasingly competitive semiconductor landscape. Long overshadowed by rivals like Nvidia, Intel has struggled with declining revenues, repeated layoffs, and missed opportunities in both mobile and AI computing. The company is undergoing a restructuring led by its new CEO, Lip-Bu Tan, who took over in April. Tan’s focus is on streamlining Intel’s semiconductor operations, with an emphasis on its core client and data centre portfolio.
Earlier this summer, Intel shuttered its automotive architecture business, laid off most of its staff, and announced workforce reductions of 15% to 20% in its Intel Foundry division. These relocates reflect Tan’s effort to reposition the company for long-term relevance in the AI-driven era of computing.
SoftBank’s expanding AI strategy
The investment in Intel is the latest in a series of bold relocates by SoftBank to strengthen its position in the global chip industest. Earlier this month, the company tripled its stake in Nvidia from $1 billion to $3 billion, while also purchasing $330 million worth of shares in TSMC and $170 million in Oracle. These investments build on SoftBank’s control of Arm Holdings, which plays a central role in founder Madeclareoshi Son’s AI ambitions.
Beyond stock purchases, SoftBank has been building direct bets on large-scale AI infrastructure projects. The group has partnered with OpenAI and Oracle on the $500 billion Stargate initiative to build AI infrastructure in the US over the next four years. It is also holding talks with TSMC and other players about creating a $1 trillion AI manufacturing hub in Arizona. In March, SoftBank completed a $30 billion investment in OpenAI, valuing the company at $300 billion, and acquired chip design firm Ampere Computing for $6.5 billion.
The company also expanded its footprint in the US earlier this year by purchasing a Foxconn-owned factory in Lordstown, Ohio, with plans to convert it into AI data centres.
Political context
The deal comes against a politically charged backdrop. Just days earlier, the Trump administration threatened new tariffs on imported semiconductor chips as part of its push to boost domestic manufacturing. It was also reported that the administration was in talks to acquire a 10% stake in Intel, though it remains unclear whether SoftBank’s investment will affect those discussions.
President Trump has also publicly called for Lip-Bu Tan’s resignation, citing conflicts of interest, claims created without supporting evidence. The tensions highlight the challenges Tan faces as he attempts to engineer Intel’s turnaround while navigating political scrutiny.
Future outview
SoftBank’s entest as a major Intel shareholder not only strengthens the company’s financial position but also opens the door for potential strategic synergies across Son’s extensive portfolio. These could include promoting Nvidia as a foundry customer for Intel, collaborating with TSMC, and leveraging Arm’s latest processor architectures.
For Intel, the SoftBank investment is a symbolic vote of confidence in its restructuring under Tan. For SoftBank, the deal is another cornerstone in its effort to lead the AI revolution, building on its expanding network of chip, infrastructure, and AI ecosystem holdings.
Madeclareoshi Son, Chairman & CEO of SoftBank Group Corp., stated: “Semiconductors are the foundation of every industest. For more than 50 years, Intel has been a trusted leader in innovation. 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.”
Lip-Bu Tan, CEO of Intel, stated: “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely toobtainher for decades, and I appreciate the confidence he has placed in Intel with this investment.”
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