SoftBank Plans $2B Intel Stake Amid US Government Talks

SoftBank is investing $2 billion in Intel at $23 per share, acquiring about 2% of the company's outstanding shares and becoming its fifth largest shareholder. SoftBank CEO Masayoshi Son emphasized the strategic importance of advanced semiconductor manufacturing in the U.S. and Intel's critical role in this expansion, particularly in AI and cloud computing. Intel CEO Lip-Bu Tan expressed appreciation for the long-standing collaboration with SoftBank and highlighted their shared commitment to advancing U.S. technology leadership. This investment coincides with ongoing talks between Intel and the Trump administration about a potential 10% government stake in Intel, signaling increased government involvement in the semiconductor sector. Despite Intel's stable cash reserves, the need for external investment reflects challenges in the company’s turnaround efforts amid competition from rivals like Nvidia and AMD. The move is viewed as part of a broader push to bolster U.S. semiconductor innovation and maintain technological leadership.