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

SoftBank Group Corp. agreed to buy $2 billion of Intel Corp. stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions.

Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),

The U.S. chipmaker has struggled to keep pace in the AI market alongside competitors like Nvidia. Softbank has agreed to buy Intel common stock at $23 per share.

The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.

Last July, I took note when Intel released the Neural Compute Stick. It looked like an oversized USB stick, and acted as an accelerator for local AI applications, especially machine vision.

By extending the pool of RAM available to integrated graphics, Intel is positioning its systems to handle larger models that would otherwise be constrained. This may allow users to offload more of the model onto VRAM, reducing bottlenecks and improving stability when running AI tools.

The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,