Intel, SoftBank
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Intel is getting a $2 billion investment in common stock from SoftBank, which is betting big on the AI revolution.
Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),
SoftBank Group Corp. agreed to buy $2 billion of Intel Corp. stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions.
Intel has secured a crucial $2 billion lifeline from Japanese investment conglomerate SoftBank, marking a significant intervention that comes at a turning point for the struggling American chip giant.
The ongoing US trade policy saga has revealed there are many ways for the administration to help a company's fortunes
The investment will make SoftBank Intel’s fifth biggest investor, with the conglomerate paying $23 per share of Intel common stock. Lip-Bu Tan, Intel’s CEO, said in a statement that he “appreciate (s) the confidence (SoftBank) has placed in Intel with this investment.”
The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.
For now, AI tends to be enhancing workers, not replacing them — except for some jobs already being outsourced.
By extending the pool of RAM available to integrated graphics, Intel is positioning its systems to handle larger models that would otherwise be constrained. This may allow users to offload more of the model onto VRAM, reducing bottlenecks and improving stability when running AI tools.