SoftBank to Invest $2 Billion in Intel, Becoming Fifth-Largest Shareholder

SoftBank Group and Intel said in a joint statement that they have signed an agreement for SoftBank to invest $2 billion in Intel.

Under the agreement, SoftBank Group will acquire Intel common stock for $23 per share. The stock closed at $23.66 on Monday (Aug. 18) and rose about 6% to $25 in after-hours trading.

The investment makes SoftBank Intel's fifth-largest shareholder, according to FactSet. This is support for Intel, which has been unable to capitalize on the AI boom in advanced semiconductors and has invested heavily in manufacturing operations that have yet to secure significant customers.

"Masayoshi Son and I have worked closely together for decades, and I am grateful for his confidence in Intel through this investment," Intel CEO Lip-Mo Tan said in a statement, referring to SoftBank Group founder and CEO Masayoshi Son.

Earlier reports indicated that the US government was in talks to acquire a 10% stake in Intel. Earlier this month, US President Trump called for the resignation of the company's CEO, Lip-Bu Tan, but later changed his tune.