[News] Intel Reportedly Offers Discounted Equity to Additional Investors After SoftBank Investment

According to CNBC, sources say Intel is in talks with other major investors for a discounted equity infusion, just days after the struggling chipmaker received a $2 billion injection from SoftBank Group.

Reuters notes this could mark a second discounted capital infusion, following SoftBank’s $23-per-share investment that gave it just under a 2% stake in Intel. As CNBC adds, the deal makes SoftBank Intel’s fifth-largest shareholder—a rare vote of confidence in a company that has lagged the AI boom while pouring billions into a foundry business still short on major customers.

Sources cited by CNBC stress that Intel needs funding now to build what customers may ultimately demand. Regarding the prospect of the U.S. government taking an equity stake in exchange for CHIPS Act funds, sources add that such a move would be unhelpful since it would dilute existing shareholders.

Potential U.S. Government Stake

Commerce Secretary Howard Lutnick said on Tuesday that the U.S. government must receive an equity stake in Intel in exchange for CHIPS Act funds, as noted by the report. Even if Washington were to take such a stake—giving the struggling chipmaker a powerful backer—the bigger challenge remains securing enough paying customers, Bloomberg highlights. Analysts on Wall Street, Bloomberg adds, doubt that fresh capital alone can revive Intel after years of falling sales and eroding market share.

However, Bloomberg also notes that pressure from President Donald Trump could potentially help Intel win more clients for its manufacturing business. One analyst cited by Bloomberg suggests that if the U.S. takes an ownership stake, the administration may have to push customers toward Intel’s capacity—whether directly or indirectly through tariffs or other regulations.

Read more

• [News] Decoding SoftBank’s Intel Gamble: Son’s Bold Move to Connect ARM and Chip Manufacturing
• [News] Intel Gets Twin Lifelines: SoftBank’s $2B Backing and Potential 10% Stake from U.S. Government

(Photo credit: Intel)