Hello friends! Today, we’re diving into a big tech story involving a Japanese giant and a legendary chipmaker.

Japanese conglomerate SoftBank has committed a massive $2 billion to invest in Intel, marking a major move to support advanced tech and semiconductors across America. The deal, announced right after the markets closed, sees SoftBank acquiring Intel stock at $23 per share, slightly below the closing price of $23.66, causing Intel’s shares to jump over 5% after hours.

SoftBank’s CEO, Masayoshi Son, highlighted that this strategic investment reflects confidence in the growing semiconductor manufacturing and supply chain in the U.S., with Intel playing a key role in this expansion. This investment lends strong validation to Intel, which has faced competition from Nvidia recently, and shows SoftBank’s renewed focus on artificial intelligence chips in America.

In line with other recent activities, SoftBank has bought a factory in Ohio owned by Foxconn, aiming to develop AI data centers, emphasizing their dedication to the tech scene. Meanwhile, Intel is going through significant restructuring under its new CEO, Lip-Bu Tan, including layoffs and division cutbacks, especially in its automotive architecture and foundry units. Political tensions have also emerged, with then-President Trump calling for Tan’s resignation amidst debates over U.S.-China chip supply issues, and discussions of government stakes in Intel emerging amidst threats of new tariffs on imported chips.

This deal underscores a pivotal moment in U.S. tech and manufacturing policy, with industry giants betting big on American semiconductor leadership. Stay tuned for more updates on this exciting story!