Artificial Intelligence

SoftBank Invests $2B in Intel

Published AUG 19 2025

Story

Above: A photo illustration of the Intel logo displayed on a smartphone, with the SoftBank Group logo in the background. Image credit: Muhammed Selim Korkutata/Anadolu/Getty Images

The Facts

Japanese investment holding company SoftBank and U.S. chip manufacturer Intel announced a definitive securities purchase agreement on Monday, under which SoftBank will purchase $2 billion worth of Intel common stock.
Intel
The market reaction to the announcement varied between the two companies, with Intel's share price rising by more than 5% in after-hours trading in New York, while SoftBank's share price slumped by roughly 5% in Tokyo.
BBC News
The Straits Times
Per the agreement, SoftBank will pay $23 for each share of Intel common stock, a discount from Monday’s closing price of $23.66. Subject to customary closing conditions, this will grant the bank an approximate 2% stake in the company.
SoftBank Group Corp
Reuters
AI Invest
The acquisition strengthens SoftBank’s AI portfolio, which includes investments in leading AI companies and projects such as Nvidia, Stargate, and OpenAI, with the bank committing up to $30 billion in the latter as part of a syndicate.
Business Insider
The Straits Times
SoftBank Group Corp
The influx of capital also comes at a time of declining fortunes for Intel, which recently implemented spending cuts, as well as a plan to reduce the company’s headcount by 15% to 75,000 globally amid financial difficulties, including an annual loss of $18.8 billion in 2024.
Verge
Reuters
Intel Corporation
The investment follows reports that the Trump administration is considering acquiring as much as a 10% stake in Intel, with U.S. Treasury Secretary Scott Bessent suggesting to CNBC that a deal may involve converting state grants into an equity stake.
FOX News
CNN
CNBC

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

For the time being, Softbank's agreement presents Intel with a crucial lifeline following a period of sustained financial difficulty for the company. However, while Softbank’s $2 billion investment may restore some of Intel’s lost confidence, what is truly needed is a long-term strategic investor to reverse the chip manufacturer’s otherwise terminal decline.

TradingView

Narrative B

SoftBank’s investment in Intel demonstrates the bank's commitment to realizing the potential of advanced technology and semiconductors in the U.S. By purchasing a stake in Intel, SoftBank strengthens its AI portfolio while simultaneously building its long-term vision of enabling an AI revolution, which will pay untold dividends in the future.

SoftBank Group Corp