SoftBank Infuses $2 Billion into Intel, Securing 2% Stake Amid Turnaround Efforts

TOKYO and SANTA CLARA, Calif. – SoftBank Group Corp. has announced a $2 billion investment in Intel Corporation, acquiring approximately 2% of the chipmaker's outstanding shares. The deal, confirmed on Monday, August 18, 2025, sees SoftBank purchasing Intel common stock at $23 per share, positioning the Japanese conglomerate as a significant top-tier shareholder in the struggling U.S. semiconductor giant.

This strategic investment is seen as a crucial vote of confidence for Intel, which has faced substantial financial challenges, including an $18.8 billion annual loss in 2024—its first since 1986. The capital infusion comes as Intel works to revitalize its operations and regain market share in a highly competitive industry, particularly in the booming artificial intelligence chip sector where it has lagged.

Masayoshi Son, Chairman and CEO of SoftBank Group, emphasized the strategic importance of the move, stating, "Semiconductors are the foundation of every industry... 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." Intel CEO Lip-Bu Tan reciprocated, expressing pleasure to "deepen our relationship with SoftBank" and appreciating the confidence placed in Intel.

The investment aligns with SoftBank's broader vision of accelerating the AI revolution and expanding its semiconductor portfolio. SoftBank, which also holds a majority stake in Arm and recently acquired Ampere Computing, is heavily involved in large-scale AI infrastructure projects, including the $500 billion "Stargate" data center initiative with OpenAI and Oracle. This move solidifies its position across the AI value chain.

The announcement also coincides with ongoing reports that the Trump administration is considering acquiring a 10% stake in Intel by converting some or all of the grants allocated under the CHIPS and Science Act into equity. This potential government interest further underscores Intel's strategic importance to U.S. national security and technological sovereignty, as it remains one of the few American companies capable of advanced chip manufacturing.

Despite the significant investment, SoftBank will not seek a board seat or commit to purchasing Intel's chips, focusing solely on the equity stake. Following the news, Intel's stock surged by approximately 6-10% in after-hours trading, reflecting market optimism about the company's future prospects and its ongoing turnaround efforts under CEO Lip-Bu Tan.