SoftBank Invests $2 Billion in Intel

Intel secures a $2 billion capital injection from Japan's SoftBank Group, a move that boosts the American microchip giant as it seeks to recover from challenges and losses in the artificial intelligence (AI) chip market.

The investment makes SoftBank one of the ten largest shareholders in Intel, strengthening its portfolio in semiconductors and AI assets. SoftBank will pay $23 per Intel share, representing a stake of less than 2%.

Intel faces financial challenges, with a loss of $18.8 billion in 2024. AMD continues to increase its market share.

The deal follows reports that the US government is also considering buying a stake in Intel. SoftBank's stock fell by 4%, while Intel rose by 6.6%.

The investment is part of SoftBank's strategy to strengthen its position in the field of artificial intelligence, where it is investing heavily, including $30 billion in OpenAI.