SoftBank is investing $2 billion in Intel
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Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.
The deal comes as the US government explores a deal to take as much as a 10% ownership stake in the Santa Clara, California, firm.
A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.
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Trump administration vying to own a big stake in Intel after SoftBank’s $2 billion bet on company
U.S. Commerce Secretary Howard Lutnick on Tuesday confirmed the U.S. government is vying for a 10% stake in Silicon Valley pioneer Intel in an unusual deal that would deepen the Trump administration’s financial ties with major computer chip manufacturers and punctuate a dramatic about-face from the president’s recent push to oust the company’s CEO.
Intel’s stock rose 7% on Tuesday after SoftBank announced a stake in the chip maker, and as the U.S. government considers an investment as well. Money might not be the solution to Intel Corp.’s problems.
(Reuters) -Intel is in talks with other large investors to receive an equity infusion at a discounted price, CNBC reported on Wednesday, just days after the chipmaker got a $2 billion capital injection from SoftBank Group.
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The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,