Intel will receive a $2 billion capital injection from the SoftBank group, giving the US chip maker a rare boost as it struggles to regain lost ground in the artificial intelligence race.

The investment, announced Monday, will make SoftBank one of Intel’s top 10 shareholders and extends the Japanese group’s high-stakes bets on semiconductors and AI, which already include the $500 billion Stargate US data centre project.

SoftBank had also considered acquiring Intel’s contract chipmaking business, according to the Financial Times, though talks did not progress. Intel’s foundry operation has long trailed Taiwan’s TSMC and failed to attract major outside customers.

“SoftBank’s investment helps, but it is not what is going to move the dial for Intel,” said Amir Anvarzadeh, strategist at Asymmetric Advisors.

Analysts view the deal as part of chief Masayoshi Son’s broader bid to strengthen US ties. The $2 billion stake is modest versus Intel’s $18.8 billion loss last year, but symbolically important as it signals confidence from one of the world’s most influential tech investors.

The move follows reports that Washington could take a stake in Intel after a meeting between new chief executive Lip-Bu Tan and President Donald Trump. The President had called for Tan’s resignation earlier this year over his ties to Chinese firms, sparking speculation about White House involvement. Tokyo, meanwhile, pledged a $550 billion US investment package last month, though the Intel funding sits outside that deal.

SoftBank will pay $23 a share, just under Monday’s $23.66 close, via a new stock issue representing nearly 2 per cent of Intel’s market value, making it the company’s sixth-largest shareholder, LSEG data shows. It will take only an equity stake, with no board seat or chip-purchasing commitments.