The investment will make SoftBank Intel’s fifth biggest investor, with the conglomerate paying $23 per share of Intel common stock. Lip-Bu Tan, Intel’s CEO, said in a statement that he “appreciate (s) the confidence (SoftBank) has placed in Intel with this investment.”

A $2 billion investment represents a roughly 2% stake, ranking SoftBank the fifth-largest shareholder of Intel, while a reported 10% stake by the U.S. would be worth about $10.4 billion as of Monday’s share price.

The deal comes as the US government explores a deal to take as much as a 10% ownership stake in the Santa Clara, California, firm.

Japanese investment giant SoftBank has announced a substantial US$2bn investment in Intel, the major American semiconductor company. This move marks a significant vote of confidence for Intel, which has faced scrutiny, including pressure from U.S. political figures calling for the resignation of its CEO.

Intel is getting a $2 billion capital injection from SoftBank Group in a major vote of confidence for the troubled U.S. chipmaker in the middle of a turnaround. The equity investment, announced by the companies on Monday,

Intel is getting a $2 billion investment in common stock from SoftBank, which is betting big on the AI revolution.

Intel Corporation sees a steep rally; speculation over U.S. stake and SoftBank investment fuels optimism, but can it overcome challenges? Click for our INTC update.

Intel’s stock rose 7% on Tuesday after SoftBank announced a stake in the chip maker, and as the U.S. government considers an investment as well. Money might not be the solution to Intel Corp.’s problems.

The move could signal SoftBank’s chip ambitions, as the company may be gearing up to build Arm CPU tiles, AI XPUs, and Ampere chips tied to the Stargate Project.