In a move that’s shaking up the global semiconductor landscape, Japan’s SoftBank Group has announced a $2 billion equity investment in Intel, marking a significant bet on the future of American chipmaking and artificial intelligence. The deal, revealed on August 19, 2025, sees SoftBank purchasing Intel common stock at $23 per share, becoming the sixth-largest shareholder in the storied U.S. chipmaker, according to LSEG data. While the transaction is still subject to customary closing conditions, its implications for both companies—and the wider tech industry—are already reverberating.
SoftBank’s investment arrives at a critical juncture for Intel. Once the undisputed titan of Silicon Valley, Intel has struggled in recent years to keep pace with rivals like Nvidia and AMD, particularly as the artificial intelligence chip market has boomed. In 2024, Intel reported a staggering $18.8 billion annual loss, its first since 1986, and its foundry business posted a $3.17 billion operating loss on $4.4 billion in revenue for the second quarter of 2025. Restructuring efforts under new CEO Lip-Bu Tan, who took the helm in March 2025, have included thousands of layoffs and the cancellation of planned investments in Poland and Germany. The company’s workforce is expected to shrink to 75,000 core employees by the end of this year, down from 99,500 at the close of 2024, reflecting a previously announced 15% reduction.
In the face of these headwinds, SoftBank’s capital infusion is more than just a financial lifeline—it’s a vote of confidence. “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,” said SoftBank Group Chairman and CEO Masayoshi Son in a statement reported by Reuters, The Japan Times, and other outlets. Intel’s CEO Lip-Bu Tan echoed this optimism, stating, “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 US technology and manufacturing leadership.”
The timing of SoftBank’s move is no accident. Just hours before the investment was announced, reports surfaced that the Trump administration is in discussions to take a 10% stake in Intel—a move that could make the U.S. government the chipmaker’s largest shareholder. According to Bloomberg and other media, this potential government stake would likely involve converting grants from the CHIPS and Science Act into equity, with Intel set to receive $10.9 billion in grants and access to up to $11 billion in loans under the Biden-era law. U.S. Treasury Secretary Scott Bessent told Reuters, “The last thing we’re going to do is take a stake and then try to drum up business. The stake would be a conversion of the grants and maybe increase the investment into Intel to help stabilize the company for chip production here in the U.S.”
SoftBank’s investment, however, stands apart from these government machinations. Sources familiar with the deal told Reuters that SoftBank is not seeking a board seat at Intel, nor is it committing to purchase Intel chips. The Japanese conglomerate’s stake will come via a primary issuance of common stock by Intel, amounting to just under 2% of the company’s market capitalization at the close of trading on August 18, 2025. Despite the positive intent behind the move, the market’s initial reaction was mixed: Intel shares surged more than 7% following the news, while SoftBank’s stock closed down 4% in Tokyo.
This latest deal is part of a broader pattern of SoftBank doubling down on U.S. technology and AI infrastructure. Since President Donald Trump’s return to the White House, SoftBank has ramped up its American investments. In January 2025, Masayoshi Son joined OpenAI’s Sam Altman and Oracle’s Larry Ellison at the White House to announce the Stargate initiative—a $500 billion effort to build U.S. AI infrastructure over four years. SoftBank has committed $100 billion to the project, which aims to deploy data centers, electricity generation, and other critical infrastructure. The group is also acquiring Foxconn’s electric vehicle factory in Ohio, which will be repurposed to manufacture AI servers and other data center equipment as part of Stargate. The Japan Times reported that SoftBank is currently scouting potential sites for a flagship Stargate data center, considering factors like access to water, power, and telecom networks.
SoftBank’s appetite for AI and semiconductor assets doesn’t end there. In March 2025, the company announced the $6.5 billion acquisition of Ampere Computing, a U.S.-based chip design startup known for its Arm-based server CPUs—key components in modern data centers. This all-cash deal, financed by loans from Mizuho Bank and other financial institutions, further cements SoftBank’s commitment to shaping the infrastructure underpinning the AI revolution. As noted by Reuters, SoftBank’s 2025 investment spree also includes a $30 billion commitment to OpenAI, underscoring the group’s ambition to be a major player in next-generation technology.
Notably, SoftBank’s $2 billion stake in Intel is not part of Tokyo’s recently pledged $550 billion investment package into the U.S., which was announced as part of a trade deal with Washington in July 2025. A Japanese government source told Reuters that the Intel investment is a separate initiative, highlighting SoftBank’s independent strategy.
Behind the scenes, the relationship between SoftBank’s Masayoshi Son and Intel’s Lip-Bu Tan has played a pivotal role in bringing the deal to fruition. The Financial Times reported that Son and Tan, who previously served as a SoftBank board member before stepping down in 2022, have been in talks since Tan’s appointment as CEO. Their discussions reportedly spanned a range of possibilities, from joint ventures to minority investments, ultimately culminating in the current agreement. “Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment,” Tan remarked, according to Silicon Republic.
Despite the optimism from both companies’ leadership, analysts remain cautious about the long-term impact of the deal. Amir Anvarzadeh, a Japan equity strategist at Asymmetric Advisors, told Reuters, “SoftBank’s investment helps, but it is not what is going to move the dial for Intel. It’s more to maintain this very good relationship he has with Trump.” Others point out that while the $2 billion infusion is helpful, Intel’s challenges—especially in its foundry business, where it has yet to secure major customers—are far from over. The company is reportedly considering a significant overhaul of its contract chip manufacturing operations in a bid to attract external clients and better compete with industry leader TSMC.
For now, SoftBank’s move stands as a bold endorsement of Intel’s potential and a clear signal of its own ambitions in shaping the future of AI and semiconductor technology. As both companies navigate a rapidly evolving landscape, their partnership could prove pivotal not just for their own fortunes, but for the broader direction of American and global tech innovation.
