Intel gets $2-B lifeline in form of SoftBank equity investment

INTEL is getting a $2-billion capital injection from SoftBank Group in a major vote of confidence for the troubled US chipmaker that is in the middle of a turnaround effort.

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The equity investment, announced by the two companies on Monday, is a lifeline for the onceiconic US chipmaker which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence (AI) chip industry.

It will make SoftBank a top 10 shareholder of Intel and add to the Japanese tech investor’s ambitious bet on AI that includes the $500-billion Stargate US data center project.

The deal follows media reports last week that the US government may buy a stake in Intel, after a meeting between new Chief Executive Officer (CEO) Lip-Bu Tan and President Donald J. Trump that was sparked by the President’s demand for Mr. Tan’s resignation over his ties to Chinese firms.

SoftBank’s decision to invest in Intel is not connected to Mr. Trump, a person familiar with the matter told Reuters. The White House did not immediately respond to a request for comment.