Business

SoftBank Group to Invest $2 Billion in Intel

Japan’s SoftBank Group and Intel Corporation on Monday announced signing of a definitive securities purchase agreement, under which SoftBank will make a $2 billion investment in Intel common stock.

The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the US.

SoftBank Group Chairman & CEO Masayoshi Son said that semiconductors have been the foundation of every industry.

“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 US, with Intel playing a critical role,” he said.

Intel CEO Lip-Bu Tan said that they were pleased to deepen their relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shared Intel’s commitment to advancing the US technology and manufacturing leadership.

“Masayoshi and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment, Tan added.

Under the terms of the agreement, SoftBank will pay $23 per share for Intel’s common stock, which closed on Monday at $23.66. The shares rose about 6% in extended trading to $25 and the deal is subject to customary closing conditions.

Investment to Enable AI Revolution

According to a report by CNBC, SoftBank’s investment in Intel builds upon its long-term vision of enabling the AI revolution by accelerating access to advanced technologies that support digital transformation, cloud computing, and next-generation infrastructure.

The investment, equal to about 2% of Intel, making SoftBank the fifth-biggest shareholder, according to FactSet. It’s a vote of support for Intel, which hasn’t been able to take advantage of the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that’s yet to secure a significant customer, the report said.

Intel shares lost 60% of their value last year, their worst performance in the company’s more than half-century on the public market. The stock is up 18% in 2025 as of Monday’s close.

SoftBank, meanwhile, has become an increasingly large player in the global chip and AI markets. In 2016, SoftBank acquired chip designer Arm in a deal worth about $32 billion at the time. Today the company is worth almost $150 billion. Arm-based chips are part of Nvidia’s systems that go into data centres.

In March this year, SoftBank announced plans to acquire another chip designer, Ampere Computing, for $6.5 billion. SoftBank was also part of President Trump’s Stargate announcement in January, along with OpenAI and Oracle.

The three companies committed to invest an initial $100 billion and up to $500 billion over the next four years in the AI infrastructure project. Two months later, SoftBank led a $40 billion investment into OpenAI, the largest private tech deal on record.

Global Business Magazine

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