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International Business Times
International Business Times
Business
Ann Resuma

Apollo Plans To Invest $5 Billion In Intel: Reports

Apollo Global Management, a U.S.-based asset management company, is reportedly planning to invest $5 billion in Intel.

The company wants to put in an equity-like investment in Intel, Bloomberg reported Sunday, citing a person in knowledge of the matter.

The development comes as Intel has been struggling since the start of the year, having lost almost 60% of the value of its shares. The chipmaker recently announced major job cuts amid fierce competition, particularly from Nvidia, in the race to develop cutting-edge chips for artificial intelligence.

However, the potential investment would be welcome news for the chipmaker, which was once touted as the most valuable in the world.

According to Bloomberg, Intel's executives are currently evaluating Apollo's proposal, and negotiations remain in the early stages. As of writing, no agreement was finalized between the parties. The report also noted that the investment figure could still change, and talks for a potential deal may not reach fruition.

Earlier this year, Apollo revealed that it would be acquiring a 49% equity interest of $11 billion in a joint venture pertaining to Intel's new manufacturing facility in Ireland.

The news about the new investment deal with Intel comes following reports that Qualcomm is considering acquiring Intel. Qualcomm is also said to be exploring options to acquire portions of Intel's design business, particularly its PC design unit.

In a bid to cope with a slump in its business, Intel recently said that it had signed new contracts. Earlier this month, the chipmaker said that Amazon would use its foundry to build at least two chips for its Amazon Web Services unit.

The Silicon Valley giant had also revealed that it secured up to $3 billion in investment from the Biden administration to boost its manufacturing of advanced semiconductors for the U.S. military.

Last month, Intel reported a net loss of $1.6 billion, or 38 cents per share, during the second quarter of 2024, compared to income of $1.5 billon, or 35 cents per share, during the same period last year.

The company had announced $10 billion in spending cuts that would save $10 billion by laying off 15% of its workforce, about 17,500 employees, and suspending dividend payments starting in the fourth quarter of 2024.

It also issued a weaker-than-expected forecast for the third quarter.

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