SoftBank’s $2b injection fuels new hope for Intel’s AI comeback

• After years marked by leadership missteps and missed AI opportunities, the Santa Clara giant has found itself playing catch-up while rivals rake in the artificial intelligence riches.

It’s not every day that a legend in the chipmaking world gets a shot at redemption, but that’s exactly what’s unfolding for Intel as SoftBank Group steps up with a $2 billion capital injection.

The announcement, is a clear sign that the Japanese tech investment powerhouse is betting big on Intel’s ability to claw its way back into the high-stakes AI chip arena.

For Intel—a company once synonymous with semiconductor domination—this is more than just an infusion of cash. After years marked by leadership missteps and missed AI opportunities, the Santa Clara giant has found itself playing catch-up while rivals rake in the artificial intelligence riches.

The SoftBank deal lands squarely in the middle of Intel’s much-publicised turnaround push, led by new CEO Lip-Bu Tan.

The timing is all the more notable given the political swirl around Intel lately.

SoftBank’s grand vision

Reports surfaced last week about possible government intervention—potentially a direct stake from the US government—after a charged meeting between CEO Tan and President Trump. The President’s reported calls for Tan’s resignation over his China connections added further intrigue.

Nevertheless, insiders insist that SoftBank’s investment decision was made independently of the White House drama.

With this move, SoftBank instantly rockets into Intel’s top-10 shareholders—landing as the sixth largest.

The $23-a-share deal, via a fresh issuance of common stock, gives SoftBank just under two per cent ownership in Intel, fueling not just Intel’s turnaround, but also SoftBank’s grand vision for AI infrastructure in America.

Remember, these are the folks spearheading the $500 billion Stargate US data centre mega-project and pouring $30 billion into OpenAI this year.

Rapidly evolving puzzle

SoftBank CEO Masayoshi Son was blunt about the significance, saying that America’s role in next-gen semiconductor manufacturing is poised to expand—and Intel is at the centre of that story.

But there’s no “takeover” angle here: SoftBank isn’t angling for a board seat or promising to buy up swathes of Intel’s chips. This is a simple, strategic equity play—though the market reaction was anything but quiet: SoftBank shares tumbled 5 per cent, while Intel’s stock jumped 5.6 per cent after hours.

There is still a lot of ground to cover before Intel can declare victory. The company posted a staggering $18.8 billion loss in 2024—its first annual loss in nearly 40 years. The very real specter of direct US government investment hangs over everything, with some reports suggesting the Feds are contemplating a 10 per cent stake.

If nothing else, SoftBank’s investment piles further momentum onto the US side of the global chip and AI arms race.

With Foxconn planning to build data centre gear for SoftBank’s Stargate venture at its repurposed Ohio factory, and the Japanese investor casting an ever-wider net across the AI value chain, the Intel lifeline is just one piece of a much bigger, rapidly evolving puzzle.