August 19, 2025 – In a high-profile move underscoring global confidence in American chipmaking, SoftBank Group has agreed to invest $2 billion in Intel Corporation, purchasing common stock at $23 per share. This transaction will give SoftBank a stake just under 2 percent in the embattled semiconductor leader.
For Intel—whose revenue plunged from $79 billion in 2021 to $53 billion in 2024, culminating in a staggering $18.8 billion net loss—this infusion arrives as a crucial shot in the arm amid an aggressive transformation under newly appointed CEO Lip-Bu Tan. The company is simultaneously slashing 15% of its workforce and shifting its focus toward artificial intelligence chips.
SoftBank’s move is part of its broader bid to cultivate AI and semiconductor assets, reinforcing its global footprint in cutting-edge technologies. The investment dovetails with its Stargate initiative—a mammoth $500 billion U.S. AI data center project—and existing stakes in Arm, Nvidia, TSMC, and various AI startups.
Intel’s stock surged 6–7 percent during pre-market trading, reflecting investor optimism around the vote of confidence. Meanwhile, SoftBank’s shares dipped approximately 4 percent in Tokyo amid market caution.
According to LSEG data, this makes SoftBank one of Intel’s top-10 shareholders—possibly ranking sixth-largest—with no immediate plans for a board seat or chip purchase arrangement.
Reports suggest that the U.S. government is exploring a 10 percent equity stake in Intel—possibly converting CHIPS and Science Act subsidies into ownership. If realized, this would dwarf SoftBank’s holding and signal an unprecedented level of state involvement in the chip industry amid national security concerns.
Steve Putna, director at Texas A&M Semiconductor Institute, called the deal a critical opportunity for Intel to stabilize and recover over the next 9 to 18 months.
Danni Hewson of AJ Bell termed it “a vote of confidence in Tan’s recovery effort” but cautioned that Intel must catch up in AI to rivals like Nvidia and AMD.
Amir Anvarzadeh, equity strategist, noted the personal ties between SoftBank’s Masayoshi Son and President Trump may be a strategic factor—though SoftBank sources assert the investment stands on its own merit.
Confidence in U.S. Leadership: SoftBank’s investment underscores ongoing belief in Intel’s foundational role in U.S. manufacturing and global semiconductor supply chains.
Strategic Realignment: Intel’s restructuring and external backing position it to challenge AI-focused competitors more aggressively.
Alignment Growth: For SoftBank, the equity reaffirmation complements its expansive AI and semiconductor exposure, reinforcing its ties to U.S. tech progress.
Policy Impacts: The U.S. government’s prospective stake highlights how tech policy, industrial strategy, and global finance are increasingly intertwined.
