Intel, SoftBank
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Intel is getting a $2 billion investment in common stock from SoftBank, which is betting big on the AI revolution.
Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),
SoftBank Group Corp. agreed to buy $2 billion of Intel Corp. stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions.
Intel has secured a crucial $2 billion lifeline from Japanese investment conglomerate SoftBank, marking a significant intervention that comes at a turning point for the struggling American chip giant.
The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.
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The U.S. chipmaker has struggled to keep pace in the AI market alongside competitors like Nvidia. Softbank has agreed to buy Intel common stock at $23 per share.
Intel's rocky ties with TSMC, strained after Pat Gelsinger's "rude" Taiwan remarks and the loss of a key wafer discount, have left the chipmaker battling billions in foundry losses, mounting competition and leadership changes even as its stock rallies on fresh investment and government interest.
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By extending the pool of RAM available to integrated graphics, Intel is positioning its systems to handle larger models that would otherwise be constrained. This may allow users to offload more of the model onto VRAM, reducing bottlenecks and improving stability when running AI tools.