Intel in talks with other large investors for equity boost at discount, sources say
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CNBC

Intel in talks with other large investors for equity boost at discount, sources say

August 20, 2025
08:03 PM
3 min read
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It comes after SoftBank announced it would invest $2 billion in the struggling chipmaker.

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3 min read

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investment

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Published

August 20, 2025

08:03 PM

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CNBC

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In this articleINTC your favorite stocksCREATE FREE ACCOUNTIntel's CEO Lip-Bu Tan speaks at the company's Annual Manufacturing nology Conference in San Jose, California, U.S

April 29, 2025.Laure Andrillon | ReutersIntel is in talks with other large investors to receive an equity infusion at a discounted price, people familiar with the matter told CNBC's David Faber.Intel stock slid nearly 7% on Wednesday, more than erasing its gains from earlier this week

The stock initially surged as investors responded to Intel's announcement of a $2 billion capital injection from SoftBank and reports that the Trump administration is weighing different ways to get involved with the company.Commerce Secretary Howard Lutnick told CNBC on Tuesday that the U.S. government must receive an equity stake in Intel in exchange for CHIPS Act funds.Sources told Faber that the chipmaker is now looking beyond SoftBank for an equity boost."They need money to build whatever it is that the customers may actually, ultimately want," Faber said on CNBC's "Squawk on the Street." "And having the CHIPS Act money, which is free, so to speak, no strings attached, become equity is not helpful to them because it's dilutive."Read more CNBC newsSilicon Valley's AI deals are creating zombie startups: 'You hollowed out the organization'OpenAI launches cheapest ChatGPT plan at $4.6, starting in IndiaAnalysts downplay AI bubble worries as Altman says some investors will be left 'very burnt'Intel is getting a $2 billion investment from SoftBankIntel is attempting a turnaround after suffering from years of declining sales and shrinking market .The company has struggled to capitalize on the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing that's yet to secure a significant customer.Intel has also overhauled its leadership, bringing in Lip-Bu Tan to be its CEO in March, after his predecessor, Pat Gelsinger, was ousted in December.Two weeks ago, President Donald Trump called for Tan to resign, saying he was "highly CONFLICTED."The president's tone toward Tan and the company cooled after the CEO visited the White House to discuss his background.Don’t miss these insights from CNBC Morgan Stanley says nu power is gaining momentum, recommends these stocksWells Fargo hikes S&P 500 target as U.S. tariffs get delayed againMorgan Stanley maintains bullish stance on Nvidia heading into earnings, raises price targetWhy UBS just raised its gold forecast again as the precious metal hovers near record highwatch now15:0015:00Watch CNBC's full interview with U.S

Commerce Secretary Howard LutnickSquawk on the Street