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Intel is getting a $2 billion investment from SoftBank

hist78

hist78

Well-known member
Key Points:
  • ~ SoftBank is buying roughly 2% of Intel’s outstanding shares in a $2 billion investment in the chipmaker.

  • ~ Intel shares lost 60% of their value last year as the company failed to gain traction in the artificial intelligence market that’s dominated by Nvidia.

  • ~ The investment is a vote of confidence in Intel, which has spent heavily to stand up a manufacturing business but hasn’t yet secured a significant customer.
 
hist78 said:
Key Points:
  • ~ SoftBank is buying roughly 2% of Intel’s outstanding shares in a $2 billion investment in the chipmaker.

  • ~ Intel shares lost 60% of their value last year as the company failed to gain traction in the artificial intelligence market that’s dominated by Nvidia.

  • ~ The investment is a vote of confidence in Intel, which has spent heavily to stand up a manufacturing business but hasn’t yet secured a significant customer.
Click to expand...

IMO, this cash investment is exactly what Intel urgently needs and is a step in the right direction. Intel must improve its financial position as soon as possible before it gets out of control.
 
hist78 said:
IMO, this cash investment is exactly what Intel urgently needs and is a step in the right direction. Intel must improve its financial position as soon as possible before it gets out of control.
Click to expand...
As the press release notes, this is purchase of ~2% of Intel common stock and not a direct investment. It won't directly impact any financials (e.g., capital expenditures, profits) just yet.

That being said, it signals Softbank's willingness to follow up with financing or debt packages (similar to what they did with WeWork, where they readily threw $15B+ at). At one point, Softbank owned ~5% of Nvidia (until 2019) and still owns ~90% of ARM. Exciting news indeed!
 
tedc said:
As the press release notes, this is purchase of ~2% of Intel common stock and not a direct investment. It won't directly impact any financials (e.g., capital expenditures, profits) just yet.

That being said, it signals Softbank's willingness to follow up with financing or debt packages (similar to what they did with WeWork, where they readily threw $15B+ at). At one point, Softbank owned ~5% of Nvidia (until 2019) and still owns ~90% of ARM. Exciting news indeed!
Click to expand...

I’ve reviewed available information, and I think it’s more likely that SoftBank is buying Intel shares directly from Intel’s treasury stock or through newly issued common stock, rather than from the public stock exchange. We should know more in the coming days.
 
TOKYO & SANTA CLARA, Calif.--(BUSINESS WIRE)-- SoftBank Group Corp. (TOKYO: 9984, “SoftBank”) and Intel Corporation (Nasdaq: INTC) today announced their signing of a definitive securities purchase agreement, under which SoftBank will make a $2 billion investment in Intel common stock.

The investment comes as both Intel and SoftBank deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.

Masayoshi Son, Chairman & CEO of SoftBank Group Corp., said:
“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.”

Lip-Bu Tan, CEO of Intel, said:
“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 U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.”

Under the terms of the agreement, SoftBank will pay $23 per share of Intel common stock. The transaction is subject to customary closing conditions.

SoftBank’s investment in Intel builds upon its long-term vision of enabling the AI revolution by accelerating access to advanced technologies that support digital transformation, cloud computing, and next-generation infrastructure.

About SoftBank Group
The SoftBank Group invests in breakthrough technology to improve the quality of life for people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes stakes in AI, smart robotics, IoT, telecommunications, internet services, and clean energy technology providers, as well as a majority stake in Arm, which is building the future of computing; and the SoftBank Vision Funds, which are investing to help transform industries and shape new ones. To learn more, please visit https://group.softbank/en.

About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250818389477/en/

Intel Media Relations
Sophie Metzger
sophie.metzger@intel.com

Softbank Group
sbpr@softbank.co.jp

Source: Intel Corporation

Released Aug 18, 2025 • 7:10 PM EDT
 
hist78 said:
I’ve reviewed available information, and I think it’s more likely that SoftBank is buying Intel shares directly from Intel’s treasury stock or through newly issued common stock, rather than from the public stock exchange. We should know more in the coming days.
Click to expand...
You're likely right here. After all, we know Intel holds plenty of its own stock through stock buybacks over the years...
 
But what is happening with Samsung and the CHIPS-act money they were granted? Is Elon getting all these NASA and DoD subsidies so he can run Samsung's Taylor-fab as his own? Is this POTUS' way of making good with Elon after he kicked him out of the WH and killing all the EV subsidies for Elon?

POTUS doesn't want anything more specific from Samsung in return for the CHIPS-act money they dolled out to Samsung?
 
user nl said:
But what is happening with Samsung and the CHIPS-act money they were granted? Is Elon getting all these NASA and DoD subsidies so he can run Samsung's Taylor-fab as his own? Is this POTUS' way of making good with Elon after he kicked him out of the WH and killing all the EV subsidies for Elon?

POTUS doesn't want anything more specific from Samsung in return for the CHIPS-act money they dolled out to Samsung?
Click to expand...
What are you talking about?
The funds received from the Ministry of Defense are for Space X, right?
It's not a subsidy for Tesla, is it?
Why are you mixing it?
 
Intel is issuing shares to SoftBank, which in turn pays 23$ a share. I think the correct terminology is "private placement". Regardless, Intel gets an equity injection of 2 billion $, and investors are diluted accordingly.
 
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