It remains to be seen whether or not the US government will get a piece of Intel, but Japanese technology giant SoftBank Group Corp. is claiming its own stake in the US chip firm, as SoftBank and Intel together announced this week that SoftBank is investing $2 billion in Intel via a direct stock purchase priced at $23 per share.
The signing of a definitive securities purchase agreement by SoftBank and Intel comes as reports continue to suggest that the US government is considering a 10% stake in Intel. The Financial Times separately reported that SoftBank also discussed the possibility of acquiring Intel’s fab business before settling on a stock purchase agreement. The investment also appears to put Intel in a stronger position to benefit from the $500 billion Stargate AI project announced in January 2025 by OpenAI, SoftBank, and Oracle.
The $2 billion investment is good for roughly 2% ownership of Intel, and it makes SoftBank Intel’s sixth largest investor, according to several published reports.
A purchase of common stock does not necessarily provide SoftBank with additional inner-circle strategic influence in Intel, but Patrick Moorhead, founder, CEO, and chief analyst at Moor Insights & Strategy noted in a LinkedIn post, “This is very good news for $INTC, any way you slice it. At the very minimum, SoftBank believes that Intel will be worth a lot more in the future, possibly by its own commitments.”
Regarding a potential investment in Intel by the US government, US Secretary of Commerce Howard Lutnick told CNBC that any potential investment would not come with any voting rights or influence in the governance of the company.
Intel stock soared around 10% Tuesday morning to above $25 per share.
Masayoshi Son, Chairman & CEO of SoftBank Group Corp., said as part of the announcement, “Semiconductors are 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 United States, with Intel playing a critical role.”
Intel CEO Lip-Bu Tan added, “We are very pleased to deepen our relationship with SoftBank, a company that’s at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”