SoftBank Invests $2 Billion in Intel to Bolster AI and Semiconductor Future

SoftBank is making a $2 billion investment in Intel by purchasing common stock at $23 per share, the companies announced on Monday. The move underscores SoftBank’s growing commitment to the semiconductor industry amid the rapid expansion of artificial intelligence. Masayoshi Son, chairman and CEO of SoftBank Group, said the investment reflects his belief that advanced semiconductor manufacturing and supply chains will continue to grow in the United States, with Intel at the center of that shift. He emphasized Intel’s pivotal role in enabling the next phase of the AI revolution. Intel stated that the investment aligns with its long-term strategy to strengthen its position as a leader in chip technology critical for AI development. The company highlighted that the partnership reinforces its vision of supporting the global AI ecosystem through reliable, high-performance hardware. The news sent Intel’s stock price higher in after-hours trading, following a recent surge after Bloomberg reported that the U.S. government was considering acquiring a stake in the company. The potential government involvement has fueled optimism about increased support for domestic semiconductor production. Earlier in the week, former President Donald Trump publicly praised Intel CEO Lip-Bu Tan, reversing earlier criticism and calling for his resignation, which further boosted market sentiment around the company. SoftBank has emerged as a major player in the AI space, having previously invested in OpenAI and other key AI ventures. This latest move with Intel strengthens its broader strategy of backing foundational technologies that power artificial intelligence, particularly in the areas of chip manufacturing and infrastructure.