Mint Quick Edit | SoftBank’s Intel bet: What’s inside?

5 months ago 10

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Intel needs the best person for the job, as catching up with AI-focused players like Nvidia and AMD won’t be easy. (REUTERS)

Summary

Can this US chipmaker, an also-ran of the AI age, stage a comeback? Whether or not its survival is at stake, it’s a high-risk, high-return play in a globally prized sector.

Having fallen behind in the AI chip race, might Intel be poised for a comeback? Big money is flowing in. On Tuesday, Japan’s SoftBank announced a $2 billion investment in the American chipmaker. Separately, the US government is reportedly eyeing a 10% stake worth $10 billion in the company.

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This underscores the importance the White House is placing on the growth of this strategic sector. SoftBank’s investment may be partly due to Japanese efforts to invest more in the US as the country negotiates lower tariffs. But it also serves as a vote of confidence in Intel’s prospects.

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Its Malaysian-born CEO Lip-Bu Tan, who was brought in barely a few months ago to turn it around, has been in the spotlight ever since US President Donald Trump demanded his resignation for alleged ties with China’s ruling party, although he seemed to have changed his mind later, given his praise for Tan after meeting him.

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Intel simply needs the best person for the job, as catching up with AI-focused players like Nvidia and AMD won’t be easy. “Only the paranoid survive," Intel’s former chief Andy Grove used to say. Deep-pocket investors are betting it can regain some of that spirit to regain an edge.

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