SoftBank is betting big on semiconductors in the age of AI.
The investment holding company is investing $2 billion in Intel common stock, the companies announced on Monday. Under the agreement, SoftBank will pay $23 per share.
"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," Masayoshi Son, the chairman and CEO of SoftBank, said in a statement.
Intel said in a statement that SoftBank's investment "builds upon its long-term vision of enabling the AI revolution."
Intel and SoftBank did not immediately respond to requests for comment from Business Insider.
SoftBank has heavily invested in AI, positioning itself as a major backer of OpenAI.
Intel, a producer of semiconductors, or chips, which are critical for powering AI, saw its stock surge on Friday after Bloomberg reported the US government was considering taking a stake in the company.
Earlier last week, President Donald Trump praised Intel's CEO, Lip-Bu Tan, after previously criticizing him and calling for his resignation.
Shares of SoftBank gained at the open on Tuesday before falling sharply. They were trading 4.4% lower at 10 a.m. local time in Tokyo.
Intel's stock was trading up after hours on Monday.
